Merkel May drop Opposition To Higher ESM Cap

German Chancellor Angela Merkel may give up her opposition to raising the lending cap to EUR750 billion ($999.53 billion) on the planned European Stability Mechanism, German daily Sueddeutsche Zeitung reported Thursday citing government officials.

European leaders hope to have the ESM in place this summer. It will replace the European Financial Stability Facility, a temporary fund used to bailout Ireland and Portugal. The EFSF has around EUR250 billion left.

Merkel acknowledged international pressure for a higher ESM amount than the planned EUR500 billion, the newspaper said.