PARIS (Bloomberg) — European Central Bank council member Axel Weber said governments can increase the size of the European Union-led bailout fund if necessary to restore confidence in the euro.

"Seven hundred and fifty billion should be enough to assure the markets," Weber said at the German embassy in Paris late on Wednesday. "If not, it will have to be increased." In a worst-case scenario, the fund would need an additional 140 billion euros ($187 billion), an amount that would not jeopardise the survival of the euro, Weber said in Berlin yesterday.

Contagion from Europe's sovereign debt crisis is spreading to Spain, sparking concern that the bailout fund set up in May isn't large enough to rescue the euro region's fourth-largest economy. The premium on Spanish debt over German bunds rose to a euro-era record yesterday and Portugal's bonds fell on concern they will follow Ireland and Greece in asking for external aid.

The European Union and the International Monetary Fund established the 750 billion-euro fund in May after Greece's near-default threatened the survival of the single currency. Germany, which yesterday ruled out expanding the fund, is resisting pressure from the European Commission to double its size, Die Welt newspaper reported without saying where it got the information.

Weber said in Berlin yesterday that if Greece, Ireland, Portugal and Spain were unable to refinance government debt — a scenario he considers inconceivable — rescue funds of 1.07 trillion euros would be needed.