Brussels - The European Commission on Monday said it would clear Irish plans to guarantee bank deposits after the government agreed to extend such protection to big foreign banks operating in the country.

"The European Commission welcomes the various changes and commitments made and the close cooperation with the Irish authorities over the last week," the EU executive said in a statement.

"The Commission will proceed urgently to the adoption of a decision on the Irish scheme in accordance with EU state aid rules," it said.

Ireland was the first EU country to guarantee deposits in Irish banks amid news of crumbling government finances and the ongoing global credit crisis.

But the government's initial plans were criticized by the commission for discriminating against non-Irish banks operating in Ireland.

Ireland's unilateral move had also infuriated Britain, which feared that it would prompt British savers to move their money to Ireland.

But the commission on Monday said that the latest Irish proposal "addresses issues" that it had raised "relating to the maintenance of the integrity of the single market in financial services and compliance with EU state aid principles." (dpa)