* Estonia, set to join euro zone, against euro zone bonds
* Resistant to idea of raising size of EFSF
* Reflects euro zone differences about issuing new debt
(Adds quotes, background)
By David Mardiste
TALLINN, Dec 17 (Reuters) - The finance minister of Estonia, whose country joins the euro zone as newest member on January 1, said on Friday he was against the single currency bloc issuing its own bonds and raising the size of the bailout fund.
Estonia enters the euro zone with the lowest level of public debt as a share of the economy of any member and the second lowest deficit.
In an interview to Reuters Insider, Jurgen Ligi lined up with Germany in opposition to a new kind of debt issue.
"I don't think such a regular and big instrument should exist and...it takes responsibility off from certain countries to solve their own problems," he said.
"Actually, I am very cautious about it and I know it is a hot debate that can change, but I am sceptical, personally." ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For the Reuters Insider interview click on
http://link.reuters.com/bez62r
For an interview with Estonia's prime minister click on
http://link.reuters.com/nux62r ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
He said any idea of increasing the bailout fund should also be considered carefully.
"It is a strong message for countries at home and it is a strong message for the markets -- too many governments out of the market is not actually a solution," he said.
It could also lead to too many countries being in the fund, reducing the number of those having to donate. "It is a matter of mathematics," he said.
He played down the chance of a break up of the euro zone, but said he was concerned about the effectiveness of austerity programmes in countries like Ireland, Greece and Portugal.
"As a politician I can't confirm it (any talk of a break up of the euro zone). I have not met any finance minister who could even talk about it," he said.
"The short term concern is to convince the market that the situation is not that bad as they tend to think if they compare different currencies," he said.
He said he was concerned about countries' rescue programmes and austerity measures. "Everyone has to cut, but not everyone is able to do enough," he said.
He said the main problem in Greece was public understanding of the need for budget deficit cuts, while in Ireland the worry was how the banks would come out of the problems.
"In the case of Ireland, the future is quite bright if we take the competitiveness of the economy. In the case of Spain and Portugal the economy should be more optimistic...if we talk about public finances," he added. (Reporting by David Mardiste, writing by Patrick Lannin; Editing by Ron Askew)