Press Release: Free movement of capital: Commission calls again on Germany to apply a Court ruling on Volkswagen law

The European Commission decided to ask Germany formally to modify the 1960 law privatising Volkswagen (VW law) following a Court of Justice ruling of 23 October 2007. The Court found that three provisions of the VW law attribute unjustified special rights to German public authorities (the Land of Lower Saxony and potentially also the Federal Government) and that by maintaining them in force, Germany failed to fulfil its obligations under the EC Treaty rules on the free movement of capital (Article 56). The request for compliance with the Court ruling took the form of a ‘reasoned opinion’, the second stage of the infringement procedure under Article 228 of the EC Treaty related to compliance with Court of Justice rulings. In the absence of a satisfactory reply from Germany within two months of receiving the reasoned opinion, the Commission may decide to refer the matter to the European Court of Justice.

Deutsche Welle, 11.12.08: New Volkswagen Law Takes Effect, Says German Ministry http://www.dw-world.de/dw/article/0,,3866568,00.html

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