The creation of a European Monetary Fund based on the International Monetary Fund is included in the new plan proposed by Germany and France which will boost cooperation and monitoring within the euro zone.

The main aim behind this is to create tools in order to prevent replication of instability in the Euro zone ensuing from the debt troubles of a single member, like Greece, the report from the Financial Times said late Sunday.

Wolfgang Schaeuble, the German Finance Minister, made public the first details of the plan over the weekend. Though, the plan is not aimed at creating a competitor to the IMF, but an establishment for the internal equilibrium of the Euro zone, which would have experience of the IMF as well as comparable intervention mechanisms.

The fund would comprise of emergency liquidity with "strict" norms attached and countries that are in a dire need of help would be disqualified from a vote by euro members making a decision to grant relief money, Financial Times, Deutschland said.