EU may extend rescue fund in exchange of surveillance on Spain and Portugal

European leaders are discussing the possibility to overhaul the euro zone’s 440 billion-euro ($599.1 billion) rescue fund in exchange for some stricter measures and closer surveillance on struggling states, according to a report from the Financial Times.

Citing people familiar with the talks the FT reported that senior leaders are considering "enhanced surveillance" of Spain and Portugal rather than assistance, which would give a European Union stamp of approval on proposed reforms.

"The EU should not try to impose a program on any country," Olli Rehn, the EU's economic and monetary affairs commissioner, told the FT in an interview.

"Spain is taking very bold and profound measures."

No decisions are likely at a summit of EU leaders in Brussels on Friday, the newspaper said.

Besides, the EU was also considering extending bailout loans to Greece and Ireland to 30 years in a bid to draw a line under the bloc's debt crisis.

John Lipsky, the IMF's first deputy managing director, told the newspaper the cases of Greece and Ireland were extremely difficult, adding that loans to both countries "had no guarantee of success.