Germany says prepared for any financial fallout from Italy vote

BERLIN, Dec 2 (Reuters) - Germany is prepared to react to any impact on financial markets from Italy's constitutional referendum this weekend, a Finance Ministry spokeswoman said on Friday.

"We are always prepared," Friederike von Tiesenhausen said during a regular government news conference.

There are fears that a No vote could lead to a political impasse, impact Italy's public finances, and unsettle markets.

Von Tiesenhausen declined to comment on possible Italian government aid for ailing bank Monte dei Paschi.

She said that EU rules requiring private investors to take losses before banks can be rescued at taxpayers' expense must be respected.

(Reporting by Joseph Nasr; Editing by Michelle Martin)