The Italian government is ready to support Fiat SpA's (F.MI) expansion plan in Europe if asked by the Turin-based company, Italian Economy Minister Giulio Tremonti said Thursday during an interview with Italian TV Sky.

"Let's see how the situation develops," Tremonti said when asked about the possibility of the government helping Fiat in a potential takeover of German carmaker Adam Opel Gmbh, a unit of U.S. carmaker General Motors Corp. (GM).

German economics ministry state secretary Jochen Homann Thursday said the government can't rule out the possible failure of Magna International Inc.'s (MGA) offer. Last week, Magna was selected by the German government as the frontrunner for Opel's operations.

Fiat has presented a plan to acquire Opel, as has the U.S.-based investment group Ripplewood.

-By Sabrina Cohen, Dow Jones Newswires; +39 02 5821 9906; sabrina.cohen@dowjones.com