The European Commission today approved the UK government's rescue package to bail-out mortgage lender Bradford & Bingley.
Clearance under EU state aid rules was rushed through in less than a day instead of the months it usually takes Brussels to vet such measures for fair competition.
Commission and UK competition officials had been in contact over the weekend as the terms of the deal were hammered out, ensuring the EU formalities could be concluded quickly.
Today, having received the formal, detailed terms from London less than 24 hours earlier, EU Competition Commissioner Neelie Kroes announced the go-ahead. She confirmed that the state aid measures designed to keep Bradford and Bingley afloat comply with EU rules on rescue aid.
The UK government has pledged to submit to Brussels within six months details of a longer-term restructuring - or liquidation - plan. That will also have to be examined by the Commission under its strict rules on restructuring aid.
'This case shows that, with good co-operation from the member state concerned, the Commission can move extremely quickly to provide legal certainty for rescue measures,' said Ms Kroes.
'It demonstrates that state aid control is not an obstacle to protecting the interests of depositors and promoting financial stability. I look forward to continuing to work closely with the UK authorities during any discussions on the future of Bradford & Bingley,' she added.
The Commission said the aid package was designed to 'ensure financial stability, protect retail depositors and support the orderly winding down of Bradford & Bingley'.
