The FT is running with a story saying Germany is open to increasing bailout funds in exchange for tighter budget rules, the FT is reporting.
The story is the source of the latest bounce in EUR and broad risk appetite.
The FT is behind a paywall. The gist of the story is that Merkel is prepared to allow the EFSF run in tandem with the EFSF (this idea was floated earlier today). In return, Berlin wants a firm rule on deficits not exceeding limits.
