The European Commission is expected to gain the power to impose austerity measures in the euro area countries receiving financial aid.

This is the proposal contained in a confidential document prepared by the Office of the President of Herman van Rompuy. Through such an extent, the EU executive would "usurp" the functions of governments in countries such as Greece, Ireland and Portugal.

Confidential document was sent to the offices of the European leaders yesterday by Herman van Rompuy, who will chair the summit on Friday. It also shows that Eurobonds, or sharing the euro area debt would be a powerful tool to resolve the crisis, despite the strong opposition of Germany to the idea.

Documents obtained by "The Guardian" to be discussed today by top officials in trying to get a consensus before the summit. The proposal could trigger an explosive rebellion from countries that do not like these options.

The proposal calls for "a more intrusive control of the EU on national budgetary policies" and offers various options for imposing fiscal discipline at the supranational level.

Helped countries could be deprived of voting rights within the EU, according to radical proposals being discussed at the highest level in Brussels on Friday before the crucial summit which will discuss the issue of sovereign debt.

These proposals will mean a significant loss of sovereignty of Member States in defining budgetary policies, economic and tax.