Euro Zone Boosts Bailout Firewall to $1.06 Trillion

he euro zone raised the combined lending ceiling for their two bailout funds to 700 billion euros on Friday from 500 billion, euro zone finance ministers said in a statement.

Bloomberg / Bloomberg via Getty Images A Euro sign sculpture stands in front of the European Central Bank's (ECB) headquarters.

The 700 billion will come from 500 billion euros of the permanent bailout fund, the European Stability Mechanism, and the 200 billion euros committed under existing bailout programs for Greece, Ireland and Portugal by the temporary European Financial Stability Facility (EFSF) fund.

"The current overall ceiling for ESM/EFSF lending ... will be raised to 700 billion euros," said the statement, distributed after talks of finance ministers in Copenhagen.

"All together, the euro area is mobilizing an overall firewall of approximately 800 billion euros, more than 1 trillion dollars," the statement said.

Austrian Finance Minister Maria Fekter said earlier the 17-nation currency area would combine two rescue funds for a year to make more money available in case of emergency. She put the total figure at some 800 billion euros, but that appeared to include money already spent to conjure up a more impressive headline number for investors. Read more