FRANKFURT, Jan 30 - A European crisis fund with more than 430 billion euros ($514 billion) of firepower could lend money to countries for defence, the head of the European Stability Mechanism told Reuters, as the bloc scrambles to reinforce its military.

Pierre Gramegna, managing director of the European Stability Mechanism, said the ESM could give credit lines for defence and would not demand stringent economic reform in return, in part to dispel any stigma that might arise from asking the emergency euro zone fund for money.