Plans to compensate damage to real estate caused by earthquakes linked to gas extraction in the Netherlands have been granted EU approval.

The government intends to set up a non-profit foundation to manage real estate activities related to the renovation and sale of buildings in the areas affected by drilling in the Groningen gas field.

Three quarters of the activities of the foundation will be financed by Nederlandse Aardolie Maatschapij, a company involved in gas extraction in the field, while the remaining quarter will be financed in part by the state through a €10 million (£8.8m) grant.

The European Commission said: “The Commission found that the financing by the state ensures the continuity of real estate transactions in the area and does not confer an advantage to Nederlandse Aardolie Maatschapij.”