IMF to Encourage EU to Increase Bailout Fund

According to a report obtained by Reuters, IMF chief Dominique Strauss-Kahn will present a report that will stress the need for a larger rescue fund at a meeting of euro zone finance ministers and European Central Bank President Jean-Claude Trichet on Monday. "The recovery could still stay the course, but this scenario could now easily be derailed by the renewed financial market turmoil," the IMF report said. "The sovereign and financial market storm affecting the periphery (of the euro zone) constitutes a severe downside risk."

I have two comments on this; if you increase the size it will send a signal to the market that Spain is going to need a bailout and my second point is good luck selling this to Germany.