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Volkswagen law - Benn - 05-28-2008
The European Commission warned Germany on Tuesday of a new legal action if Berlin goes ahead with a revised law concerning control over carmaker Volkswagen.
Germany approved on Tuesday an amendment to the so-called Volkswagen Law, which maintains veto power of the German state of Lower Saxony to block company decisions of Volkswagen with its
The Volkswagen Law was put into place when the carmaker was privatized in the 1960s.
"If the current situation is formalized, the European Commission has to start a procedure for non-respect of a court ruling on this matter," Oliver Drewes, a spokesman for European Union (EU) Internal Market Commissioner Charlie McCreevy, told reporters at a regular briefing.
The European Commission contested the special arrangement before court in 2004. The European Court of Justice, the EU's highest court ruled last year against the German legislation, saying it wrongly prevented the free flow of capital.