EC to issue final warning to Germany over VW's protection law

Jonathan Todd, the European Commision's spokesman for the internal market, has said that the commission is set to issue a last warning to Germany tomorrow, instructing the government to modify the law which protects Volkswagen AG from hostile bids.

The commission decides next Wednesday if it will proceed to the next step in infringement proceedings against the German government.

If Germany ignores this warning, it could face legal action at the European Court of Justice.

Last March, the commission initiated infringement proceedings against Germany because of this legislation, which dates from 1960.

The Volkswagen law prohibits any shareholder from acquiring more than 20% of the voting rights in the carmaker.