EU approves Germany's banking rescue plan

Brussels, Oct 28 (DPA) The European Commission Tuesday approved Germany's 470 billion euro ($588 billion) financial rescue package after finding that it does not violate European Union (EU) treaty rules.

'The package constitutes an adequate means to remedy a serious disturbance in the German economy while avoiding undue distortions of competition,' the bloc's executive arm said in a statement.

In approving the package, officials in Brussels noted that the German measures do not discriminate against foreign banks, they are limited in time and scope, and they foresee 'adequate safeguards to minimise distortions of competition'.

Approved by the German parliament earlier this month, the package foresees up to 400 billion euros in inter-bank lending guarantees and a 70 billion euro fund to recapitalise banks and take toxic assets away from them.