BERLIN -- The European Union will revive legal action against Germany over the so-called "Volkswagen law" that shields Europe's largest carmaker from a takeover.
The European Commission, the EU's executive arm, said in an e-mailed statement that it will ask the European Court of Justice to impose a multimillion-euro fine on Germany for failing to remove government veto power at VW when it modified the law in 2008.
"Member states are required to take all necessary measures to comply with the entirety of the judgment of the court," the commission said Thursday in the statement.
The legal action concerns the German government's failure to respect an October 2007 European court ruling demanding removal of the German state of Lower Saxony's right to block a deal for VW, which is based in the region, by using its 20 percent minority stake. The court said that restricts the free flow of capital in Europe.