The European Commission is keeping the door open for stepped-up legal action against Germany over a law that has shielded Volkswagen from takeover, an official at the EU executive said on Wednesday.
Internal Market Commissioner Charlie McCreevy launched legal action against Germany last June for failing to amend properly the so-called VW Law, which the European Court of Justice said broke EU rules on the free movement of capital.
McCreevy warned Germany in November it had two months to amend the law or face court action. So far the case has not been taken further, sparking media reports on Wednesday that it had been put on hold indefinitely.
“The European Commission is studying the response from Germany in order to take a decision on this matter,” the Commission official said.
A Commission spokesman told a news briefing later that the case had not been concluded. “It’s a difficult issue, it raises highly complex legal issues. It’s still being examined,” the spokesman said.
Rival carmaker Porsche has said the law blocks its attempt to take full control of VW. (Reuters)