* Germany says euro states could face serious difficulties
* Steinbrueck says G20 reform progress "tough"
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By Matthias Inverardi
BONN, Germany, March 9 (Reuters) - A divergence in the competitive situations of countries within the euro zone is a source of major concern, German Finance Minister Peer Steinbrueck said on Monday.
Speaking to students at an event near Bonn, Steinbrueck said he did not believe the euro currency itself would come under threat, but without naming specific countries expressed concern about the fragile finances of some members of the currency bloc.
"My biggest worry is that the competitive levels within the euro zone are on a very divergent path," Steinbrueck said.
"There are individual euro countries that could face serious difficulties. I don't want to talk publicly about helping them. The governments should do their jobs and undertake everything they can to stabilise the situation," he added.
"It is inconceivable for the pillars of the euro zone that one country within the bloc comes under serious difficulties."
Last month in a speech in Duesseldorf, Steinbrueck first broached the topic of euro zone financial troubles and said that bigger, economically-stable nations might have to come to the aid of weaker members.
Countries like Ireland and Greece have been hit hard by the global economic crisis and as a consequence are being forced to pay hefty premiums over bigger euro states to borrow money, a situation which has aggravated their woes.
Steinbrueck said euro-zone problems had to be kept in perspective, saying the swelling U.S. budget deficit was "far more worrying" than the rising deficit in Ireland.
Steinbrueck also touched on a looming summit of G20 countries in London, where the world's major economic powers aim to agree changes to global financial rules in order to prevent a recurrence of the current crisis.
Envoys from the G20 met late last week to prepare the April 2 summit and Steinbrueck suggested they were having a tough time making progress.
"I have the impression that the British government has a big interest in making the summit a success and is pushing for stronger regulation," he said. "But the preparations at working-group level are proving tough."
"The idea that something will be agreed (at the summit) which obliges all states to take the same actions simply isn't right."
Germany hosted a summit of European G20 countries last month and they agreed on tighter regulation of hedge funds and to explore the use of sanctions against tax havens.
But European countries must win the backing of powers like the United States, China and Russia at the summit in London if their ideas are to see the light of day.
(Writing by Noah Barkin; Editing by Toby Chopra)