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Germany rejected some measures in draft conclusions from a summit of EU heads on Thursday, including giving the European Stability Mechanism (ESM) a banking licence and issuing common eurozone debt, a senior German source said.

The conclusions seen by Reuters earlier said the permanent ESM rescue fund would get a banking licence and run alongside the EFSF, bolstering its ability to tackle the eurozone debt crisis.

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“We are rejecting this in negotiations,” the source said, speaking on condition of anonymity.

In the draft, EU leaders said they were committed to a new “fiscal compact” for the eurozone, including much tighter budget deficit rules and debt issuance procedures, draft conclusions from a summit of EU heads of state showed on Thursday.

The draft also showed that the eurozone plans to bring forward the introduction of its permanent bailout fund, the European Stability Mechanism, to July 2012, and give the facility a banking licence.