EU will sue against VW law

Wolfsburg (dapd) The EU commission generates new pressure concerning the divisive VW-law. Bruxelles armed to sue a second time already during the current treaty violation trial against the federal republic of Germany in front of the EU-court. The commission wants to agree on filing suit on thursday, commission circles announced on wednesday. The judges in Luxemburg will have to decide as well then whether also the changed VW law obstructs free capital flow within the EU illicitly.



The privatization of the car maker was coordinated 1960 by the VW-law. 1959 the state of lower Saxony and the federal republic of Germany agreed in a contract on the property conditions at VW. Each party received 20%, the remaining 60% were strewed at the stock exchange to small share shareholders. The property conditions were unclear because VW was founded 1938 by the NS organization "German laborfront" and it was administered after the war by British allied, afterwards by German govt.



German federal and lower Saxony determined in the contract as well, that important commitments agreed upon during VW-shareholder summits would need to pass a threshold of 80% approval unlike in normal cases 75%. Acoording to this declaration 20% of the shares are sufficient for a " blocking minority," not as usual 20%.



The contract determined and the 1960 law determined as well that German federal and lower Saxony may send two representatives into the VW-supervisory board. Furthermore the maximum voting margin was limited to 20%- even if you got 50% of the shares. Furthermore the supervisory board had to agree on erection and movement of production facilities with 2/3 majority.

Lower Saxony cannot decide by itself concerning the remaining VW law. The attempt started in 2005 of Porsche head Wiedeking to get a majority of Volkswagen led to a new owner structure. At the end of the power struggle VW controlled the car production of Porsche and not vice versa. But Porsche SE owns still more than 50% and 17 % belong to Katar.