EU says Britain clear to give post offices 150 million pounds a year

European Union regulators ruled Friday that Britain can pay the country’s post office 150 million pounds (€219 million; US$261.86 million) a year to keep rural branches open.

The European Commission said it decided not to raise any objections to the government subsidy because the funding only covered the Post Office Ltd.’s duty to pay out social welfare and pensions throughout the country.

EU state aid rules forbid governments granting firms aid which gives them an unfair competitive advantage over others.

The Post Office, the largest European retail network by number of outlets, is an “arms’ length” retail subsidiary of the state-owned mail delivery firm Royal Mail Group PLC.

Ninety percent of its turnover comes from services provided in the public interest, such as over-the-counter access to government and payment services, particularly important for old people and welfare recipients.