The European Union has approved a euro5 billion ($7.8 billion) German rescue package for the regional WestLB bank to help it deal with the subprime crisis in the global markets.

The German regional bank had a net loss of euro1.6 billion ($2.5 billion) last year, significantly higher than predicted because of the crisis. The state of North Rhine-Westphalia joined the rescue bid to help cover payment defaults. The Commission approved it on Wednesday.