FTSE, DAX, CAC Seen Rising as Euro Zone Fears Wane

European stocks are seen opening higher Monday after losing some of their momentum last week on fears of a revival of the euro zone debt crisis and the impact of a slowing Chinese economy.

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The FTSE 100 is seen opening higher by 20 points, the DAX by 37 points and the CAC by 21 points.

The Financial Times is reporting that Germany is set to bow to international pressure and increase the size of Europe’s “firewall,” the European Financial Stability Facility. The current temporary fund sits at 440 billion euros ($583 billion), but it is seen as being too small if the debt crisis takes a more serious hold in the periphery of the euro zone.

The proposal is that this fund continues to run alongside the 500 billion euros ($663 billion) permanent fund—the European Stability Mechanism—bringing the total available to 940 billion euros ($1.246 trillion).

Spain, which has come under a harsh spotlight in recent weeks over whether it can stave off a Greece-like debt crisis, saw the country’s center-right People’s Party win in Andalucia Monday, but fail to gain an outright majority. That could make it harder to push through tough austerity reforms as part of its bailout.

In the U.S., the Republican presidential candidate campaign continued over the weekend as Rick Santorum won the Louisiana primary, meaning the GOP has failed once again to deliver an outright frontrunner who’s likely to take the candidacy. Mitt Romney, who currently leads Santorum, has seen his campaign struggle in key states.

Both Germany and France hold bond auctions Monday, with the former tendering 3 billion euros in 12-month bills at 10:30 a.m. GMT, and France tendering 7 to 8 billion euros in various bills at 1:50 p.m. GMT.