Methods and systems for forwarding packets over Label Switched Paths (LSPs) in a Virtual Private Network (VPN) are implemented within a Layer-2 architecture. A system includes a number of multi-purpose nodes connected by a number of multi-protocol label switching (MPLS) LSP links. Each multi-purpose node contains at least one bridging module (BM) that runs an extension of a bridging protocol (BP) contained in the IEEE 802.1d standard. The BP is used to establish MPLS LSPs between the BMs. The BP then generates a spanning tree using a spanning tree program to establish an optimal number of active LSPs. The remaining LSPs are then set to “inactive” The BM de-allocates the resources assigned to inactive LSPs and makes the resources available to other active LSPs.