THE German government approved its share of the bold US$1 trillion rescue package for the euro yesterday, hoping to get swift support by parliament and to further stabilize the troubled European currency.

Chancellor Angela Merkel's cabinet adopted plans for legislation promising German guarantees for at least 123 billion euros (US$157 billion) in loans, said a government official who declined to be named in line with government policy.

The measure is part of a 750 billion euro package agreed by European Union members and the International Monetary Fund last weekend.

The package helped boost the currency and stock markets on Monday, but by early yesterday the cherish mood seemed to fade and the euro slipped to US$1.2670 in European midday trading - down from US$1.2804 in New York late Monday.

The 27 EU member states had adopted the plan after frantic talks lasting into the early hours of Monday. It consists of a 60 billion euro European Commission lending program, 440 billion euros in new loans by the 16 euro nations, and 250 billion euros from the IMF.

Germany's share is at least 123 billion euros but could go up to 150 billion euros, according to opposition politicians informed by Merkel on Monday afternoon. Germany will have to shoulder more if countries facing financial troubles of their own should be unable to hand out loans.

Opposition leaders Juergen Trittin of the Greens and Gregor Gysi of the Left Party voiced dissatisfaction that it remained unclear how much the German taxpayer will be billed and what the government plans entail.

Economist Christoph Schmidt, a top government adviser, also criticized the plan. "That is really not how we wanted the common European currency," Schmidt said.

"What is happening is the opposite of what we Germans thought to be stable currency policy and an independent European central bank."

Government and opposition parties started discussing the German measure yesterday. It is supposed to go to the floor next week but will likely not be adopted before June 4.