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World Bulletin / News Desk

The euro zone's ESM rescue fund will be granted a banking licence, giving it enough fire power to head off the bloc's debt crisis, Italian Prime Minister Mario Monti said on Wednesday.

German officials have strongly played down the idea that the permanent ESM fund would be given such authority, which would allow it to tap unlimited resources through the European Central Bank's liquidity operations.

Asked if the ESM should be granted a banking license, Monti told a news conference in Finland: "I think this will help.... this will in due course occur."