BERLIN, March 26: Chancellor Angela Merkel indicated on Monday that Germany was prepared to allow a boost in the eurozone's firewall against the eurozone debt crisis ahead of talks on the issue by European finance ministers.

In an apparent shift of position amid fierce international pressure, Merkel said Berlin was open to combining 500 billion euros ($662 billion) from a permanent rescue fund that comes into effect in July with 200 billion euros already promised to debt-ridden countries.

While insisting that the permanent fund, the European Stability Mechanism, should stay capped at 500 billion euros, “we could imagine —that it could run in parallel with the programmes already handed out — so 200 billion (euros),” Merkel told reporters.

The two funds could run in parallel until the 200 billion euros is paid back by so-called “programme countries” that have already received bailouts — Ireland, Portugal and Greece, she said.

“This will take several years and then the ESM will stand alone with its 500 billion euros,” she explained.—AFP