VW might get a fine of millions of euro from the EU for failing to conform with the Volkswagen law to the EU rules.
In the lawsuit filed at the EU Court of Justice, he European Commission argued that Germany’s law which prevents VW from takeovers since 1960 violates the bloc’s rules as government veto powers at the automaker still exist. The commission added that Germany instead of eliminating three provisions which were ruled unlawful by the court, it chose to scrap two of them and keep the blocking minority.
“The commission has tried for more than 12 years to overturn this law,” said Gerald Braun, a lawyer for the Brussels- based EU executive authority. “The court already clearly established in a first ruling that the contested provisions in the VW law were unlawful.”
The commission first sued VW in 2007, when the EU’s top court overturned the law that protected the automaker by capping shareholder’s voting rights at 20%. After winning the 2007 case, the commission sued Germany again last year over its “piecemeal approach” to change the law. The EU executive authority asks Germany to pay a penalty of 31,114 euro-a-day from the 2007 ruling until it decides to comply.
by Ana Cezara Savin
) - Wednesday, March 13th, 2013 - filed under News
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