EU Court Set to Rule on 'VW Law'

October 23, 2007 A ruling Tuesday by the European Union's top court on a law shielding Germany's Volkswagen AG from takeover will set the boundaries on how far national governments can go to protect industry. The European Court of Justice in Luxembourg is widely expected to overturn the decades-old "Volkswagen law" after an advisory opinion in February said the German government was excessively protecting Volkswagen. The court backs such advice about 80 percent of the time. German politicians and labor unions claim the law is needed to protect local jobs. But the European Commission took Germany to court in 2005, saying it violates the EU's single-market principles.

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