The European Union is now discussing two options for giving the euro zone rescue fund more firepower -- an insurance model and a special investment vehicle (SPIV), a paper obtained by Reuters on Monday showed.

The two options could be twinned and would not require a change to the current framework of the European Financial Stability Facility (EFSF), the paper said.

The euro zone wants to boost the EFSF's firepower without putting more money into it, while France had dropped its idea of turning the fund into a bank to tap European Central Bank funds. European leaders will decide on which approach to take at the second leg of a EU summit on Wednesday.