The European Commission approved Germany's 480-billion euro ($588 billion) financial rescue package after finding that it does not violate European Union treaty rules.
Germany can go ahead with its bank bailout plan
"The package constitutes an adequate means to remedy a serious disturbance in the German economy while avoiding undue distortions of competition," the EU Commission said in a statement released Tuesday, Oct. 28.
In approving the package, officials in Brussels noted that the German measures do not discriminate against foreign banks, are limited in time and scope, and foresee "adequate safeguards to minimize 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 an 80 billion euro fund to recapitalize banks and take toxic assets away from them.