Italy has put forth a proposal urging Eurozone economies to allow the common rescue funds to buy the debt of troubled economies on the secondary markets, which would help the countries to avoid a bailout and lower their borrowing costs.

The proposal, presented by Italy's Prime Minister Mario Monti at the G20 summit in Mexico, is backed by France and is likely to be discussed at a meeting between the leaders of core euro area economies in Rome on June 22, reports said.

French President Francois Hollande said that no decision was made in this regard, but the idea is "worth looking at."

The plan is most likely to face a stiff opposition from Germany. German Chancellor Angela Merkel had denied that there were any discussions at G20 summit on using either the European Financial Stability Facility or the European Stability Mechanism to buy Eurozone sovereign debt.

RTTNews