Berlin - German Finance Minister Peer Steinbrueck called for calm Tuesday, although he acknowledged a "very difficult and serious situation" on world financial markets.

Germany's DAX index of the leading 30 shares declined 1.6 per cent on opening to fall to 5,970, following Asian markets into negative territory.

Speaking ahead of the start of the 2009 budget debates in the German lower house of parliament, Steinbrueck insisted the effects of the financial crisis on the German real economy would be "limited."

The situation should not be overdramatized, he told local public radio in Berlin.

Although the crisis was the worst in decades, there would be no "domino effects" in Europe and no widespread bank failures, Steinbrueck predicted.

He noted that the US Federal Reserve, the European Central Bank and other central and private banks were working to ensure adequate liquidity in the money market. (dpa)