BRUSSELS (AP) — European Union regulators yesterday gave their approval to 1.9 billion euros in aid given to Britain's struggling state-owned postal service.

The European Commission said aid measures given by the British government to Royal Mail between 2001-2007 did not violate European state aid rules.

The EU head office had opened an investigation into the aid plans in 2007 and were concerned that part of the funds, which were used to cover Royal Mail's pension costs, could contravene aid rules and distort competition.

The Commission concluded that the money was needed to cover a large pensions deficit, built up over the time when Royal Mail still had a letters monopoly, which was ended in 2006.

A similar scheme was approved for France's La Poste, which suffered from similar pensions liabilities after it lost its monopoly.

The British government had failed to report the aid to EU authorities, arguing the loans and other measures given to Royal Mail did not constitute state aid, resulting in a long and dragged out probe, EU officials said.

Royal Mail has struggled to make money after it lost its 350-year-old monopoly and has had to deal with falling mail volumes as customers switch from traditional mail to e-mail.

An independent review of the state-owned postal service recommended in December the company be partly privatised.