EU approves German financial bailout plan

BRUSSELS: The European Commission on Tuesday approved a 500 billion euro ($623 billion) German government rescue plan to stabilize the country's financial institutions.

The EU executive said the plan was "in line" with European rules on what aid EU governments can give to the private sector. The commission has to approve such aid plans to ensure they do not distort competition in the EU's single market.

German lawmakers passed the rescue plan earlier this month. It was part of a coordinated European bailout effort to calm markets and restore lending between banks and to customers.