Europe to Set Up Its Own Monetary Fund to Help Stabilize Economy

With much of Europe still reeling from the Greek debt crisis, governments there will create a European Monetary Fund in an effort to help avoid similar financial predicaments and stabilize the overall economy of the continent, The Times of London reports.

The EMF would have powers comparable to the International Monetary Fund and would be a sign to the world that Europe can keep its own financial house in order, said Wolfgang Schäuble, the German Finance Minister.

Creation of the EMF would be the most significant change to European markets since the euro was launched in 1999.

The move comes after the EU scrambled to deal with the possibility that Greece -- along with Portugal, Ireland and Spain -- could default on its sovereign debt obligations.

Schäuble said it's important that Europe finds its own solutions to future economic crises, rather than looking to its international allies.

"Accepting financial aid through the International Monetary Fund would, in my opinion, be an admission that the euro countries can't solve their problems through their own efforts," Schäuble told the Times.

Established after World War II, the IMF facilitates global trade, pushes for job creation, monitors currency exchanges and offers loans to poorer countries. The IMF is made up of 186 member nations.