The German government, whose Chancellor Gerhard Schroeder is a former Prime Minister of Lower Saxony and hence VW board member, had not signalled any willingness to amend the law to suit the EC's aim to clear any obstructions to the free movement of capital within the EU. The State of Lower Saxony has an 18% stake in VW and voting rights in respect of takeover bids. In European law it is open to the EC to issue one further warning to Germany before taking the government to the European Court; it has declined to do so for the time being.
EC postpones case against Germany over VW law
28/01/2004 in Latest News