GERMANY/LUXEMBOURG/FILE: Germany has complied with a 2007 court ruling ordering it to water down a 1960 law giving the state of Lower Saxony veto rights over carmaker Volkswagen, Europe's top court says
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858666
GERMANY/LUXEMBOURG/FILE: Germany has complied with a 2007 court ruling ordering it to water down a 1960 law giving the state of Lower Saxony veto rights over carmaker Volkswagen, Europe's top court says
- Title: GERMANY/LUXEMBOURG/FILE: Germany has complied with a 2007 court ruling ordering it to water down a 1960 law giving the state of Lower Saxony veto rights over carmaker Volkswagen, Europe's top court says
- Date: 22nd October 2013
- Summary: WOLFSBURG, GERMANY (OCTOBER 22, 2013) (REUTERS) VARIOUS OF LOWER SAXONY'S STATE CABINET MEETING IN WOLFSBURG, SEAT OF VOLKSWAGEN VARIOUS OF LOWER SAXONY STATE PREMIER STEPHAN WEIL CHAIRING MEETING BINDER WIDE OF WEIL SPEAKING DURING NEWS CONFERENCE CAMERA (SOUNDBITE) (German) LOWER SAXONY STATE PREMIER, STEPHAN WEIL, SAYING: "The verdict is also a strengthening against exaggerated interests of dominating shareholders, sole dominating shareholders. I expect some very interesting further political discussions." CAMERA (SOUNDBITE) (German) LOWER SAXONY STATE PREMIER, STEPHAN WEIL, SAYING: "I never understood why the European Commission is attacking this successful company, especially during times when large parts of the European automobile industry are in great difficulties. VW is not in difficulties, VW is not a problem for Europe, VW is part of the solution for Europe." PHOTOGRAPHER TAKING PICTURES (SOUNDBITE) (German) VW'S TOP LABOUR LEADER, BERND OSTERLOH, SAYING: "We are not just talking about Lower Saxony, especially in the case of VW. We are of course talking about Germany but also about almost 20 European countries where we now have sites and where within the European works council, there are discussions about the degree of capacity and the employment situation and which models are being built there." REPORTERS
- Embargoed: 6th November 2013 12:00
- Keywords:
- Location: Germany, Luxembourg
- City:
- Country: Luxembourg Germany
- Topics: Legal System
- Reuters ID: LVADQH7FLQ8D29PR79568PO0BJQT
- Aspect Ratio:
- Story Text: Germany won the right to retain key veto power at carmaker Volkswagen on Tuesday (October 22) after Europe's top court in Luxembourg turned down the European Commission's bid to abolish its "VW law".
"Germany complied in full with the initial judgement of the court delivered in 2007," the Luxembourg-based European Union Court of Justice (ECJ) said in its ruling.
The ruling means Germany avoids fines worth tens of millions of euros and leaves the regional state of Lower Saxony, where Volkswagen is headquartered, with the power to block takeovers and other key decisions such as factory closures.
Judges rejected arguments from the European Commission, which took Germany to court in 2005 over its so-called VW Law, saying it breached EU laws on the free movement of capital.
"The verdict is also a strengthening against exaggerated interests of dominating shareholders," Lower Saxony state premier Stephan Weil said at the seat of VW in Wolfsburg.
"I never understood why the European Commission is attacking this successful company, especially during times when large parts of the European automobile industry are in great difficulties," said Weil.
"VW is not in difficulties, VW is not a problem for Europe, VW is part of the solution for Europe," Weil added.
Under German financial market rules, shareholders need at least 25 percent to hold a blocking minority, but the VW law gave Lower Saxony, with just 20 percent in the carmaker, this prerogative.
After the 2007 ruling, Germany scrapped elements of the law but kept untouched the right of any shareholder with a 20 percent stake to veto strategic decisions. That prompted the Commission to pursue Germany again, on the grounds of protectionism. - Copyright Holder: REUTERS
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