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Merkel set for bailout fund support

German chancellor Angela Merkel looks set to receive wide parliamentary backing for plans to boost the Eurozone rescue fund before she heads to a high-stakes European summit.

Following a speech by the chancellor, the German parliament's lower house is to vote on a resolution thrashed out by Mrs Merkel's governing coalition and the main opposition parties.

The EU summit will consider plans to increase the 440 billion euro (£382 billion) bailout fund's firepower by offering government bond buyers insurance against possible losses and attracting capital from private investors and sovereign wealth funds.

The parliamentary resolution stresses that Germany's liability will remain unchanged, with Berlin still guaranteeing loans of up to 211 billion euro (£183 billion) and no more.

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