GERMANY: EU unhappy with proposed changes to VW Law

The European Union is contesting amendments to the Volkswagen Law proposed by the German government in response to a European Court of Justice ruling last year.
 
According to Thomson Financial, the European Commission has confirmed that internal markets commissioner, Charlie McCreevy, has sent a letter to the German government outlining concerns.
 
 
The commissioner is reportedly concerned that the government want to retain a clause that requires 80% of shareholders to approve decisions, whilst most companies only need 75% approval.
 
The government's move is designed to allow the state of Lower Saxony, which owns a 20.3% stake in Volkswagen, to retain a power of veto over major decisions. This is considered particularly important at a time when Porsche is acquiring a majority shareholding in the company, and employees are concerned that all decision making will be transferred to Stuttgart.
 
A McGreevy spokesman told Reuters that: "The Commissioner reserves the right to open proceedings against Germany but is relying on the German authorities to do the right thing."
From: just-auto.com editorial team

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