EU Internal Market Commissioner Charlie McCreevy wants to take Germany to the bloc's top court for failing to amend properly a law shielding Volkswagen from takeover, officials at the EU executive said.
EU Internal Market Commissioner Charlie McCreevy wants to take Germany to the bloc's top court for failing to amend properly a law shielding Volkswagen from takeover, officials at the EU executive said.
The European Commission launched legal action against Germany in June but amendments proposed by Germany to the so-called "VW law" have been rejected by McCreevy, whose job is to ensure the free flow of capital across borders within the EU.
"Commissioner McCreevy will recommend to the college (European Commission) that this issue is being sent to the Court of Justice," his spokesman, Oliver Drewes, said.
"The German authorities have disregarded a court ruling and the European Court of Justice has now to define the consequences of this," Drewes said.
The Commission is first expected to give Germany a final warning and then take the country to the Luxembourg court, he added.
The top court ruled last year that the VW law in place since the carmaker's privatisation violated EU rules on the free flow of capital.
German sports car maker Porsche has already won permission from the Commission to acquire control of VW.
The German state of Lower Saxony, VW's second-biggest shareholder with just over 20 percent of the votes in Europe's biggest carmaker, has said it would keep its stake.
An amendment to the VW law -- yet to be formally adopted by Germany -- still preserves a strong say for VW staff and Lower Saxony, something Porsche is fighting.
The IG Metall labour union, which represents the carmaker's employees, said it hoped 30,000 VW workers would rally in front of the company's head office on Friday in support of the law.
© Thomson Financial News
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