UPDATE 1-Germany aims to pass Greek aid law this week-FinMin

* Government will work with banks to ensure stability

* Efforts should not be confused with debt restructuring

* Germany’s deficit breaches undermined EU budget rules

BERLIN, May 3 (BestGrowthStock) – Germany and its euro zone partners
aim to approve the necessary legislation to free up financial
aid for debt-stricken Greece this week, German Finance Minister
Wolfgang Schaeuble said on Monday.

“Our aim is to conclude what is necessary in legislative
terms this week…” Schaeuble said, adding that his euro zone
counterparts had signalled they wanted to approve their
respective parts of the Greek aid package this week.

Speaking after the German cabinet approved a draft version
of the aid law on Monday, Schaeuble said he hoped Greece would
not need to use all of the 3-year, 110 billion euro package
agreed by EU officials and the International Monetary Fund.

Euro zone finance ministers would work with the banking
sector to ensure Greece’s financial stability, he noted.

“Every (euro zone) finance minister will, in the coming
days, work hard with the major players in his national finance
sector to promote this programme and also to get the finance
sector involved again in the safeguarding of Greek financing
needs as soon as possible,” he told a news conference.

“That should not be confused with a moratorium or
restructuring,” Schaeuble added.

In future, the European Union needed to put measures in
place to ensure that some form of insolvency proceedings was
possible for countries as well as banks, Schaeuble said.

“We need something similar for member states of European
monetary union,” Schaeuble said. “When monetary union was
launched, it was impossible to imagine a country could be
threatened by insolvency within the European Stability Pact.”

Schaeuble said it was obvious Greece had joined the euro
zone in breach of the rules, but that there was no point in
fanning tensions over what had gone wrong in the past.

He added that Germany’s failure in the past to uphold the
EU’s Stability and Growth pact — which sets out rules on
deficits — had undermined budgetary discipline in the bloc.

Schaeuble also urged the bloc to accelerate efforts to
improve financial market regulations, adding that he did not
believe a consensus could be reached within the EU on a
financial transaction tax, as some policymakers have urged.

Investing Research

(Reporting by Dave Graham; editing by Tony Austin)

UPDATE 1-Germany aims to pass Greek aid law this week-FinMin