THE European Commission has moved to quell fears over the future of the £150million deal struck between the UK Government and BMW to safeguard the future of Rover's Longbridge plant.

The deal — which was agreed last month after lengthy negotiations between the Department of Trade and Industry and Rover's German parent company — still has to satisfy the EC that it does not break anti-competition rules.

Late last week, it looked as if it would stumble at this final hurdle. Karel Van Miert, the European competition commissioner responsible for considering the deal, was reported to have said he had reservations about it. However, a spokesman said the commissioner had merely sought to re-emphasise the need for comprehensive clarification on the circumstances and detail of the deal.