ECJ told Germany has complied with 2007 ruling on VW law

Article by Anita Panait, on May 30, 2013

Germany has complied with a ruling of the European Court of Justice (ECJ) over a law that gives state of Lower Saxony veto powers over Volkswagen, Advocate General Nils Wahl said in a written opinion on the case. According to Wahl, ECJ should reject an argument of the European Commission that insists on having Germany fined for infringing European Union rules.

Wahl agreed with Germany that it had complied with the terms of the ruling passed in 2007 and had already made the required overhaul of the VW law. ECJ judges will hand down their ruling on the case in the next few months. While Wahl's opinion is not binding, ECJ judges usually follow such opinions in majority of cases.

The case revolves around the "VW Law," which was enacted in 1960 and serves as a prevention against hostile takeovers. The law protects the carmaker by limiting shareholder's voting rights at 20 percent, regardless of how much of VW they own. This matched the staked owned during the previous four decades by the state of Lower Saxony.

The EC claims that Germany's overhauled VW law still violates EU rules since it gives the government veto rights at the carmaker. Germany was supposed to write off three provisions of the VW law that were declared unlawful by the ECJ in 2007. The country, however, scrapped only two provisions and kept the one that gives the government veto powers over the company, EC argues.

EC wants Germany to pay a daily penalty of EUR31,114 ($40,000) from the 2007 decision until it complies or until the ruling in the current case.  EC also wants Germany to pay a daily fine of EUR282,725 from the ruling in the current case until the VW law is in line with EU rules. In his opinion, Wahl said that if the ECJ rules that Germany had not complied with the 2007 decision, the monetary penalty should be significantly lower than what the EC demands.

Topics: germany, vw

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries