The EU Commission in Brussels made good on its threat to drag Germany in front of the European Court of Justice. According to Automobilwoche [sub], Brussels has filed suit in Luxemburg. Brussels demands that the “special treatment” for Volkswagen is to be dropped. If the suit is successful, and if Germany remains obstinate, then a penalty of at least €46.6 million ($62.2 million) is demanded. The fine would have to be paid by the German government, not by Volkswagen.
Volkswagen’s home state of Lower Saxony is holder of 20 percent of Volkswagen shares. The state has a veto right, courtesy of the VW law. That veto right protects Volkswagen from unwanted takeovers. Usually, such a veto right needs 25 percent, and Brussels insists on putting Volkswagen and Germany in compliance.