Mario Monti has confirmed he will approve Santander Central Hispano's bid for Abbey National.

Speaking at a news conference in Italy, the EU competition commissioner argued that the move would be a step towards creating a single European market in financial services.

"At first glance, it is a contribution to the objective of the Commission of having a more integrated financial services market," he told reporters.

The European Commission will rule on SCH's £8.75 billion bid by September 17.