Europe emergency fund to happen eventually

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 the March meeting.

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 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 case.”

The idea for a new rescue fund that could be tapped to help financially troubled Eurozone countries has been backed by 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 ECB President Jean-Claude Trichet said the bank has not rejected the idea but needs to see more details.