Brussels, 26/03/2012 (Agence Europe) - The Monday 26 March issue of the Financial Times reports that Germany would agree to a temporary increase to €740 billion in the European financial backstop by combining the remaining cash in the European Financial Stability Facility (EFSF), estimated to be some €240bn, with the €500bn of the European Stability Mechanism (ESM) that comes on stream in July. The Europeans' anti-crisis fire-power would fall to €500bn when the EFSF expires in 2013 and the aid to Portugal, Ireland and Greece comes to an end. This solution is mid-way between a merger of the EFSF and ESM (which would increase the bailout capacity to €940bn) and restricting capacity to the €500bn of the ESM. A final decision is expected at the ECOFIN Council on Friday 30 and Saturday 31 March. The EU's international partners will not increase their funding to the IMF unless Europe, which has promised the IMF an extra €150bn in contributions, increases its bailout capacity. (MB/transl.fl)