Speaking at a press conference, Steinbrueck said the guarantees made for Hypo Real Estate are not included in the rescue fund announced Monday, and that the package will not have any immediate impact on the 2009 budget.

Earlier in the day, a spokesperson from the German finance ministry confirmed the price tag of the country's rescue package, which includes up to €400 billion worth of guarantees for banks, and another €100 billion to recapitalize banks.

The ministry said banks will be able to draw upon a financial market stabilization fund up until the end of 2009.

Steinbrueck said Germany won't suspend the EU Stability Pact, but that it will be interpreted more flexibly given the current credit crisis. He also said banking supervision, both nationally and internationally, needs to become more efficient.

By Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Sarah Sussman, This email address is being protected from spam bots, you need Javascript enabled to view it

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