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UPDATE 2-Germany's Glos presses EU to approve Commerzbank aid

Wed Dec 3, 2008 12:59pm EST

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(Adds Commission's response)

BERLIN, Dec 3 (Reuters) - German Economy Minister Michael Glos urged the European Commission on Wednesday to make a quick and positive decision on state aid for Commerzbank (CBKG.DE).

Germany has been in a dispute with the Commission for weeks over whether the aid for Commerzbank complies with the terms of a German bank rescue fund that the EU has approved.

"The facts about Commerzbank are on the table. I expect a quick, positive decision from the Brussels bureaucracy," Glos said in a statement.

"Otherwise, the European Commission must ask itself whether it wants to take responsibility for putting German banks at risk as well as the provision of credit for companies and jobs."

The Commission rejected the comment, saying Germany had still failed to deliver the necessary information to show that the aid for Commerzbank was in line with EU rules.

"The ball is in Germany's court," said Jonathan Todd, a spokesman for EU Competition Commissioner Neelie Kroes.

Commerzbank last month became Germany's first commercial lender to turn to the government for capital, seeking the aid to help it cope with the fallout from the global financial crisis.

Finance Minister Peer Steinbrueck said on Tuesday Commerzbank's example could encourage other German banks to seek support from the government's aid plan for the sector.

Commerzbank's shares officially closed up 3 percent at 7.21 euros on Wednesday. (Additional reporting by Ilona Wissenbach in Brussels; Writing by Paul Carrel and Dave Graham; Editing by Greg Mahlich)



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