Germany is pushing for Greece to give up control over its budget policy to EU institutions, according to EU sources.

As part of discussions over a second rescue package for Greece, there are internal discussions within the Eurogroup and proposals, one of which comes from Germany on giving European institutions already operating in Greece some decision-making powers over debt-ridden Greece's fiscal policy, said anonymous sources cited by international media.

The Financial Times said it had obtained a copy of the proposal showing Germany wants a new euro zone "budget commissioner" to have the power to veto budget decisions taken by the Greek government if they are not in line with targets set by international lenders.

"Given the disappointing compliance so far, Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time," the document said.

Under the German plan, Athens would only be allowed to carry out normal state spending after servicing its debt, the FT said.

"If a future (bail-out) tranche is not disbursed, Greece cannot threaten its lenders with a default, but will instead have to accept further cuts in primary expenditures as the only possible consequence of any non-disbursement," the FT quoted the document as saying.

Sources from the Greek government, also speaking on condition of anonymity, have reacted by saying that no country has put forth a proposal for EU control over Greek finances, and that if that were the case, it would prompt a strong reaction in Athens ahead of elections expected to take place in April.

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