Germany austrian special law could put some banks at disadvantage

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(Repeats with no changes to text)BERLIN, March 25 The German finance ministry is backing German banks in a dispute over failed Austrian bank Hypo Alpe Adria, with a spokesman telling Reuters on Wednesday that Berlin was worried an Austrian special law would put some banks at a disadvantage.

"We share the concerns of German lenders that the Austrian special act disadvantages certain creditors and we've made this clear to the European Commission," the ministry spokesman said.

Five German banking associations had previously written to deputy German finance minister Thomas Steffen to complain that Austrian special acts and other measures, which Austria wants to use to involve creditors in the costs of winding down Hypo, breached rules about the free movement of capital in Europe.