Brussels - The European Commission said Thursday that it had given the green light to a planned multibillion-euro bail-out for Germany's ailing mortgage lender Hypo Real Estate.

The German government's 35-billion-euro (48-billion-dollar) guarantee was in accordance with European Union law, a statement from the EU's executive arm in Brussels said.

Berlin and a group of banks and insurers had proposed a plan to save Hypo Real Estate from collapse earlier this week. (dpa)