The euro suffered a late-day slide against the dollar Monday after the European Central Bank's chief economist rejected the idea of an IMF-style European fund to aid financially troubled EU countries. The euro had been gaining on the dollar throughout the day on waning worries over Greece until the comments from Juergen Stark of Germany were reported. The single European currency was trading at 1.3615 dollars, down from 1.3621 late Friday in New York. The dollar was meanwhile at 90.29 yen after 90.28 on Friday. Stark, in comments to the German financial daily Handelsblatt, took aim at a proposal to create a 'European IMF' that would come to the aid of heavily indebted countries like Greece. 'Such a mechanism would not be consistent with the founding principles of the monetary union,' to which Greece belongs, Stark said. The International Monetary Fund (IMF) has the financial clout and experience to step in and help indebted countries but has been held at arm's length by eurozone leaders fearful of further raising concern on the markets. In Brussels, the European Commission official is set to float a proposal on Tuesday to 'reinforce economic coordination and country surveillance' across the 16 nations that share the euro, which most observers felt would in essence create a European version of the IMF. Over the weekend, German Finance Minister Wolfgang Schaeuble told the Welt am Sonntag newspaper that 'for the internal stability of the eurozone, we need an institution that has the experience and power of the IMF.' For Stark however: 'It would be the start of a European financial scheme that could be very expensive, create the wrong incentives and finally, burden countries with more solid public finances.' Countries with 'lax budget policies' would not change their behaviour, the ECB economist warned, which could undermine public confidence in the euro, the report said. Ahead of Stark's remarks the euro had been moving up on the dollar on growing sentiment that Greece, which is planning to implement sweeping austerity measures, would be able to shore up its public finances without a bailout from its eurozone partners. In addition, investors took heart at the launch of a 5.0-billion-euro bond issue by Greece last Thursday that drew heavy demand, albeit at a steep interest rate offer. 'The markets are... breathing easier on the Greece situation with the new austerity measures viewed favourably by the markets,' said Phil McHugh of Currencies Direct. 'The over-subscription of the bond sale on Thursday was a welcome relief. In addition comments from French President (Nicholas) Sarkozy stating 'If Greece needs help, we will be there' also helped calm fears.' But Jane Foley of Forex.com added a note of caution: 'It will take years for Greece to prove it has good budget credentials and question marks over fiscal discipline could be a long-term drag on the euro.' The euro has fallen sharply against the dollar in recent months, in part because of anxieties over Greece and the cohesion of the eurozone. Dieter Zetsche, chairman of German automaker Daimler, told the Financial Times that the weakening of the euro amounted to a long-term concern for the eurozone. 'I do not wish for a further weakening of the euro,' Zetsche said. The decline has been seen in some circles as a boon for eurozone exporters, as it makes their products cheaper and more competitive on foreign markets. 'But in the long term I always say two things,' Zetsche told the Financial Times. 'The strong euro has been a good training ground for companies. It has made the weak weaker. The second thing is that a strong currency is a sign of a strong economy.' In London on Monday, the euro was changing hands at 1.3615 dollars against 1.3621 dollars on Friday, 122.93 yen (122.94), 0.9040 pounds (0.8992) and 1.4626 Swiss francs (1.4631). The dollar stood at 90.29 yen (90.28) and 1.0742 Swiss francs (1.0740). The pound was at 1.5159 dollars (1.5139). On the London Bullion Market, the price of gold slipped to 1,125.75 dollars an ounce at the fixing from 1,135 dollars an ounce on Friday. 