On Wednesday 22nd February, in Berlin, Steffen Seibert (Chancellor Angela Merkel's spokesman) told reporters that there was no need to pump more money into the eurozone's crisis-fighting war chest, the European Stability Mechanism (ESM). At the press briefing, held the week before an EU summit which is likely to be dominated by the issue, Steffen Seibert said, "We have agreed with our partners that we would look at the volume in March."

This is at odds with several top officials, such as Christine Lagarde (Head of the International Monetary Fund), who have called for the eurozone countries to increase the funds held by the ESM from the current maximum of €500 billion (£420 billion) as analysts, concerned about the soaring bond yields in some major economies, fear that the financial situation in those countries could prompt contagion throughout the eurozone. One proposal being considered is that monies left over from the €440 billion European Financial Stability Facility (EFSF), which is due to be replaced Summer 2013 by the ESM, could be transferred into it.

However, Steffen Seibert, who pointed out that Spain and Italy were now able to borrow on the bond market at a much lower rate than previously, said, ""In this respect, we have a different priority as far as the ESM is concerned. We believe that we need to decide very soon in what form and in how many tranches we pay in capital to the ESM and that Germany was prepared to send a "strong signal" in this respect." Berlin has already indicated it might be ready to pay in its share of the €80 billion in hard cash in one lump sum, rather than in several tranches." (The Local) On 2nd March eurozone leaders will meet to discuss the EU currency's debt firewall and also to elect a new head of the eurozone (the front runner is Herman Van Rompuy, the President of the European Union).

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