The European bail-out fund should be doubled if politicians want private sector investors to participate in a second bailout package for Greece, a European Central Bank governing council director has said.

Nout Wellink told Dutch newspaper Het Financieele Dagblad that a new Greek aid package would carry so many uncertainties and risks that a doubling in the bail-out fund would be necessary to take into account the contagion risk for both Ireland and Portugal.

"If you take these risks, you need to build a safety net," Mr Wellink, who is also the outgoing Dutch central bank president, said.

"It should go to €1,500 billion and there should be more flexibility in how the money can be spent."

Reuters