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German justice minister defends planned new VW law against EU criticism
Published in Saudi Press Agency on 29 - 05 - 2008


Germany's justice minister on
Thursday defended her plans to salvage parts of a law
governing Volkswagen AG that was ruled illegal by a
European court, telling company employees that the European
Commission would be «ill-advised» to take new legal
action, AP reported.
The Commission has said Germany should scrap plans to keep
a rule that gives the automaker's second-largest
shareholder _ its home state of Lower Saxony _ the ability
to block major decisions. It has said it may go to court
again.
However, the Cabinet on Tuesday approved a draft law that
includes that provision. Justice Minister Brigitte Zypries
told an assembly of some 10,000 workers at VW's Wolfsburg
headquarters that she is confident the plan complies with
last year's ruling from the European Court of Justice.
«The Commission would be ill-advised to go down the
judicial path again _ that would be very thin ice,» she
said, adding that Germany would not be «put off by
individual opinions from Brussels
Zypries said she would inform competition authorities in
Brussels that the planned legislation is «a good, correct
and important law for the form of economies that we want to
have in Europe.»
The European Court of Justice last year struck down the
original, nearly 50-year-old «VW law,» whose main effect
was to protect Europe's largest automaker by sales from a
hostile takeover.
Germany stressed that it would comply with the ruling, in
particular scrapping a provision that capped shareholders'
voting rights at 20 percent, whatever the size of their
holding.


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