Berlin says Deutsche Boerse's NYSE deal is EU decision

BERLIN (Reuters) - Deutsche Boerse's DB1Gne.DE hopes were dashed on Friday that it would win Berlin's backing for its floundering NYSE Euronext (NYX.N) takeover plans, after the German government made clear it would not interfere in Brussels.

European Commission antitrust regulators signaled they would recommend blocking a merger to create the world's largest exchange operator, a source told Reuters on Tuesday.

Upon being asked whether the German government would intervene in the issue, a spokesman for Chancellor Angela Merkel deferred to the Economy Ministry. A spokeswoman for the economy ministry then said Brussels had "sole responsibility."

Without Merkel's backing, Deutsche Boerse and NYSE will find it much tougher to sell their deal as being crucial for Europe as they talk to the so-called college of 27 European commissioners.

Deutsche Boerse's Reto Francioni and NYSE Euronext Chief Executive Duncan Niederauer hope to salvage the deal by pressing the case for the merger with commissioners ahead of a February deadline in Brussels.

A spokesman for Deutsche Boerse declined to comment.

(Reporting by Alexandra Hudson and Stephen Brown; writing by Edward Taylor)