Monti calls for eurobonds

 Italian Prime Minister Mario Monti has called for a doubling of the eurozone bail-out fund to 1tn, according to a report in Der Spiegel citing unnamed sources. The story says Mario Draghi supports a similar increase. However German finance minister Wolfgang Schauble on Sunday rejected the calls to boost the European Stability Mechanism in a television interview, says the WSJ, saying Europe must first implement the decisions made at the December summit of leaders before coming up with fresh demands for more cash. Mr Monti on Sunday also sought to reassure his government was taking austerity plans forward, the WSJ reports separately, saying on state television that plans to spin off Eni’s regulated natural gas business were going ahead. He said the government will introduce a decree within six months to detail the ownership split between energy companies Eni and Snam. There is no “delaying” on the government’s part the decision to force Eni to sell its stake in Snam after Friday’s measures to compel it to do so, Mr Monti said. The lapse of time reflects the fact that the companies are listed and have to meet market obligations, he said. Mr Monti also said he had “very high” expectations that eurozone countries would eventually agree to jointly issued bonds, although not before 2013.