MILAN (AP) — The European Union's executive has approved Italy's plans to inject 5.4 billion euros ($6 billion) into the struggling bank Monte dei Paschi di Siena as part of a rescue plan.

The Commission said Tuesday that it has cleared the capital injection only following the contribution of 4.3 billion euros from Monte dei Paschi shareholders and junior creditors, as required by EU rules meant to minimize the cost of bailouts for taxpayers.

The capital injection is intended to give the bank a buffer in case of worsening economic conditions. The restructuring includes moving more than 26 billion euros in nonperforming loans off its balance sheets.

Commission Vice President Valdis Dombrovskis said the capital injection "should protect financial stability in Europe and limit the burden on taxpayers."