Germany is backing proposals to give new powers and lending capacity to the €440bn ($577bn) eurozone rescue fund, even if that means increasing its financial guarantees, according to people familiar with the issue in Berlin and Brussels.
Such a move would be part of a package of measures, including greater co-ordination of economic policymaking between the 17 eurozone members, that could be agreed by European Union heads of government at their next summit in February.
José Manuel Barroso, president of the European Commission, said on Wednesday he supported the new wider role for the rescue fund and predicted it would be endorsed by EU leaders at the summit.