* German adviser, MEP urge Greek debt restructuring
* Euro near two-month high against dollar
* Irish lawmakers back finance bill, averting govt collapse
* Germany sees no need to boost EFSF, cites calmer markets
By Sarah Marsh and John O'Donnell
BERLIN/BRUSSELS, Jan 26 (Reuters) - An adviser to the German government and a member of the European Parliament called on Wednesday for moves to reduce Greece's debt burden, in signs that the idea is gaining ground despite the denials of euro zone policymakers.
As the bloc struggled to bridge differences over how to tackle its debt crisis, a top European Central Bank official urged wholesale reform of the region's rescue fund and Germany played down the need for change.
But Beatrice Weder di Mauro, a member of the group of German economic advisers dubbed "wise men", warned European politicians against complacency, arguing for a "broad solution" to the crisis, including a possible restructuring of Greek debt.
"A negotiation with creditors about a lengthening of maturities and more favourable conditions would help," Weder di Mauro said.
Her comments were echoed by Wolf Klinz, a member of Germany's ruling Free Democrats (FDP) who chairs a crisis-response committee in the European Parliament.
"Greece will not make it without a restructuring," he told Reuters in Brussels. "It must be done quickly -- over the next 12 months."
European governments, including those of Germany and Greece, have repeatedly rejected the idea but many economists believe the only way for Athens to emerge from under its mountain of debt would be for holders of its bonds to accept partial or later repayments.
Prominent Brussels-based think tank Bruegel said earlier this week that it viewed a Greek debt restructuring as inevitable and that delaying a decision would only increase the penalty, or haircut, for debt holders.
Economists believe there is only a 15 percent chance of a Greek debt restructuring in the first half of this year but they put the odds of extending repayment terms on its bailout loans at 45 percent, a Reuters poll showed on Wednesday.
CALMER MARKETS
After a rocky start to the year, smooth debt auctions in countries like Portugal, Spain and Italy, and promises of new policy measures have halted the contagion that led some experts to question last year whether the euro would survive.
The euro edged up for a seventh straight day to reach a two-month high against the dollar, with traders citing expectations euro zone interest rates will rise faster than those in the U.S. as a driving factor.
Other indicators also suggest investors are more confident about the bloc's prospects. Spanish stocks, for example, have surged 15 percent over the past two weeks, outperforming European shares which have risen more modestly.
On Wednesday, Ireland's shaky government averted immediate collapse by winning a vote in the lower house of parliament on its 2011 budget plans and sending a signal about its commitment to an 85 billion euro EU/IMF bailout.
But big risks remain for the euro zone and the main challenge will be to forge agreement on a new crisis strategy in the run-up to a Mar. 24-25 summit where policymakers have promised to unveil a "comprehensive package" of measures.
In an interview with the Wall Street Journal, European Central Bank Governing Council member Christian Noyer backed an increase in the EU's rescue fund, known as the European Financial Stability Facility (EFSF), and giving it new powers to buy bonds or extend credit lines to vulnerable euro members.
But Germany played down the need for a boost in the fund, saying stellar demand for the EFSF debut debt issue on Tuesday and calmer bond markets precluded the need for urgent action.
The facility was hailed as 440-billion euros strong when it was first agreed in May, but its effective lending capacity is around 250 billion euros.
"There are signs that investors are becoming more confident about Europe's readiness to do what is necessary," said Chancellor Angela Merkel's spokesman Steffen Seibert. "On this basis there is no reason to decide about (an increase in) the rescue fund."
"AHEAD OF THE CURVE"
ECB President Jean-Claude Trichet warned, however, in an interview with Reuters Insider television at the World Economic Forum in Davos that it was important for governments to get "ahead of the curve".
Leaders are also under pressure to restore confidence in their banking sectors. They have pledged to conduct a new round of stress tests -- or financial health checks -- on their banks in the coming months, but divisions remain over how far the tests should go in assessing liquidity risks.
Fitch applauded on Wednesday steps by Spain to overhaul its unlisted savings banks, whose financial condition has been a source of concern for months.
But the credit rating agency also questioned whether the steps would ultimately restore market confidence in Spain's financial sector, questioning the long timeframe the banks have been given to raise their capital levels and a lack of incentives for the private sector to inject funds.
(Writing by Noah Barkin; Editing by Ruth Pitchford)