A European Monetary Fund to help troubled euro zone countries will be created at some stage but will take time to take shape and be put in place, Eurogroup Chairman Jean-Claude Juncker said on Friday. Juncker, who chairs monthly meetings of finance ministers from the 16 countries that use the euro, added that the idea would not be on the agenda for next week's meeting. “It will not be an item on the agenda on Monday night because we have to wait for a formal proposal from the (EU) Commission, the Germans, the French and others, to have strong articulation of what this really means,” Juncker told reporters. But he backed the idea to succeed. “Yes I do think (an EMF will be formed), under the condition that the principles will be put the right way round. “By no means can this develop into a channel to avoid the no bailout clause of the (EU) treaty, so these principles have to be sorted out.” “This is not a short-term story, it's months, and no way is this meant to deal with the Greek (debt) case.” The idea for a new rescue fund that could be tapped to help financially troubled euro zone countries has been backed by German Chancellor Angela Merkel, though the response from some other leading European politicians has been more lukewarm. The European Commission has said it is ready to propose setting up such a body and European Central Bank President Jean-Claude Trichet said the bank has not rejected the idea but needs to see more details.
