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“Lex MOL” may follow “Lex Volkswagen”

According to the ruling of the European Court that was published yesterday, Germany did not fulfill its obligations towards the EU, when it kept some points of the so-called Volkswagen-law in effect.

The process was initiated by the European Commission (EC) because of the legal restraints imposed in relation to the privatization of shares of car manufacturer Volkswagen (VW). According to the legislation, special rules apply to the shareholders of VW that differ from the general regulations of the company law. According to the EC, these regulations breach the freedom of establishment and the free movement of capital.

After the Court’s decision, the German government will change the regulation soon, spokesman of the Ministry of Justice responded. Whether the law will be completely abolished or just amended is not yet decided. The developments in Germany may prove as an indicator on the European Union’s take on protectionist laws, such as the so-called “lex MOL”, which was recently passed by an overwhelming majority in the Hungarian parliament. The measure enacted to protect Hungarian energy major MOL from a hostile takeover by Austrian peer OMV may now likely be found to breach Community law. (Magyar Hírlap)