BERLIN—European Union governments are discussing proposals to increase the €440 billion ($569.98 billion) bailout fund for indebted euro-zone countries, a recognition that the fund might prove too small if the region’s debt crisis spreads to Spain, according to European officials. One proposal being considered by EU governments is to increase the EFSF’s effective lending capacity to its advertized €440 billion size, which would require a substantial increase in guarantees from financially strong countries such as Germany and France. European governments are far from reaching a consensus, with Germany particularly wary of proposals that would require it to commit more money while reducing the pressure on indebted countries to reform.
Increasing the bailout fund using financially powerful countries such as Germany and France, might prove to be a bad idea in the long run because the countries which receive these funds will eventually have to pay them back and until then Germany and France will have some sort of say in how these countries run .
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