Luxembourg’s prime minister said on Monday that a German official, will head a new euro440 billion (525 billion U.S. dollars) rescue fund for the 16 countries using the euro.

Klaus Regling will become chief executive of the European Union on the stability of the Fund, two years after he gave up most of the European Commission economic officer, according to a statement by Luxembourg Prime Minister Jean- Claude Juncker, who heads the group’s finance minister in the euro area.

Germany, Europe’s largest economy, provide up to euro148 billion in debt guarantees, the lion’s share of state support for the fund to borrow from markets to provide financial relief to any nation eurozone debt that can not make payments debt.

The German debt agency will also help underwrite the securities fund in the coming weeks.

The fund will be active later this month when at least 90 percent of state guarantees have been completed - and can deliver ransom until June 13, 2013.

It is one of the three prongs of a euro750 million ($ 1 trillion) of “shock and awe” rescue package agreed by EU leaders last month designed to calm jittery markets by creating a financial safety net for the states of the euro than default risk.

Some one billion euro60 managed by the European Commission is available to any EU country into trouble. And another euro250 million would be provided by the International Monetary Fund.

Greece avoided bankruptcy in May because the EU and the IMF lent it euro110 million.