BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said on Thursday he was "very confident" Italy could form an effective government after a national election last month left no party with a parliamentary majority.

"I don't like the Italians being criticized for how they vote," he said at a Bloomberg event in Berlin, referring to criticism expressed by the German opposition Social Democrats' candidate for chancellor, Peer Steinbrueck.

An election last month left Italy in limbo with no political force holding enough seats to form a government, threatening prolonged instability and a renewal of the euro zone's financial crisis.

(Reporting by Sarah Marsh, writing by Michelle Martin, editing by Gareth Jones)