Angela Merkel says Germany's parliament will vote later on the euro bailout fund, the European Stability Mechanism (ESM).
The German Chancellor said it would be up to finance ministers to decide whether guarantees for direct aid to banks would rest with individual states or the ESM.
Italian PM Mario Monti has won a concession from Germany over debt hours after Mario Balotelli helped Italy beat the Germans in Euro 2012.
European leaders have agreed that its banks should have direct access to EU bail out funds without adding to its government's debts.
As European leaders continue to work in to the night it is clear that there will be no big gesture here