Germany's finance ministry has reiterated its view today that there is no need to grant a banking licence to the euro zone's new bailout fund.
This licence could enable it to buy virtually unlimited amounts of debt issued by troubled euro zone states.
According to the treaty, the European Stability Mechanism (ESM) will not have a banking licence, a finance ministry spokeswoman said. "There is no need for it," she added.
The German daily Sueddeutsche Zeitung, quoting European diplomats, reported earlier that supporters of the idea, long pushed by France, were gaining ground.
With a banking licence, the ESM - which is due to replace the current temporary baliout fund, the EFSF - could borrow cash from the European Central Bank and purchase bonds from heavily indebted countries such as Spain or Italy.
The article caused several members of Chancellor Angela Merkel's centre-right coalition to reiterate their fierce opposition to the idea, which they fear could fuel inflation and jeopordise the ECB's independence.
Meanwhile, the Italian and French leaders have affirmed their support for strengthening the euro zone.
This follows a lunch meeting in Paris to discuss the continent's economic crisis.
Italian Premier Mario Monti says European leaders can not "allow their attention to wander for even a minute" away from the currency union.
French President Francois Hollande said there was significant progress toward strengthening the euro zone in recent weeks.
