Germany denies it ready to up euro zone rescue volume

BERLIN Mon Jan 23, 2012 5:43pm EST

BERLIN (Reuters) - Germany denied a report on Monday that it was ready to boost the combined firepower of the euro zone's rescue funds to 750 billion euros ($978 billion).

"It is not true. There is no such decision," German Chancellor Angela Merkel's spokesman Steffen Seibert told Reuters, referring to a Financial Times newspaper report earlier that Germany would accept an increase of the rescue schemes in return for its euro zone peers accepting tough budget rules in a new fiscal compact.

(Reporting by Andreas Rinke and Noah Barkin, writing by Annika Breidthardt; editing by Rex Merrifield)