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

The European Commission decided to open infringement proceedings against Germany following its failure to comply with a Court of Justice ruling of 23 October 2007 regarding the 1960 law privatising Volkswagen (VW law).In that judgement, 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 has failed to fulfil its obligations under the EC Treaty rules on the free movement of capital (Article 56). The request for information on Germany’s compliance with the Court ruling takes the form of a ‘letter of formal notice’ under EC Treaty infringement procedures related to compliance with Court of Justice rulings (Article 228). Failure by the German authorities to comply with the 2007 judgement could result in fines being applied by the Court of Justice.