EU reaches deal with Germany on green energy law

European Union authorities have reached an agreement with the German government on how to make its proposed green energy law compatible with EU state-aid rules, the bloc's antitrust chief said on Wednesday.

The European Commission has been examining Germany's revamped renewables legislation (EEG), which protects heavy industry from the cost of funding green energy, on concerns that this may give some companies an unfair advantage.

European Competition Commissioner Joaquin Almunia said German authorities had now allayed such concerns following talks.

"We have reached a definitive final agreement on this," Almunia told journalists at a press conference, when asked about talks concerning Germany's green energy law.

"We have started the procedure to respond with a positive decision to the notification of the new EEG sent out by the German government," he said.

The Commission can ask EU governments to recover funds granted to companies if these are found to breach EU rules.

(Reporting by Foo Yun Chee; Editing by John O'Donnell and Mark Potter)