In a leaked report for a crucial EU summit beginning on December 8, he offers a fast-track "fiscal compact" that does not need lengthy ratification by parliaments or national referendums.

Germany and France are pushing for a new EU treaty by March, saying stricter rules should be enshrined there. The US has backed their plans.

But Treasury Secretary Timothy Geithner said the US Federal Reserve had no plans to give money to the International Monetary Fund to boost the eurozone's bailout fund.

Mr Geithner, who is meeting all major eurozone leaders during his three-day visit of Europe, stressed that more action was needed to boost economic growth in Europe, alongside the longer-term reforms. He is scheduled to meet President Nicolas Sarkozy in Paris on December 7.

And if all 27 EU member states can't agree, then they are prepared to work towards a new treaty outside EU structures, involving the 17 members of the eurozone and any other country that wants to join.