VW workers rally at main German plant to support special "VW law"

VW workers rally at main German plant to support special "VW law" Berlin - Some 30,000 workers rallied at Volkswagen's Wolfsburg headquarters Friday in support of retaining the "VW law" that gives enhanced rights to the German state of Lower Saxony, in the face of calls for its abolition from the European Commission.

The rally was called after the commissioner for the European Union's internal market and services, Charlie McCreevy, said this week he would take the German federal government to the European Court of Justice over the issue.

VW's supervisory board was simultaneously holding a meeting at the headquarters of Europe's largest carmaker.

The European Commission and German luxury carmaker Porsche, which holds 30.6 per cent of VW voting rights, are demanding the repeal of the law, which gives Lower Saxony, with just 20.1 per cent of VW voting rights, a block on major decisions.

Lower Saxony Premier Christian Wulff attacked McCreevy, urging the Irish commissioner to attend to gaining a majority in his own country for the EU's Treaty of Lisbon, rather than seeking to influence German company law.

Speaking to national public broadcaster ZDF on Friday, Wulff said McCreevy was being dictatorial and that there had to be "a few laws" where Brussels had no say.

Wulff, who as premier sits on VW's board, said he did not believe the European Commission would heed McCreevy's call for renewed legal action, saying that the EU could not interfere in German company law.

Lower Saxony's blocking minority was essential to prevent Porsche, which has indicated it intends to increase its stake, from moving the VW headquarters to Stuttgart, where Porsche is based, Wulff said.

He added that VW's broad spread of shareholders "had thus far benefited" the company. "This tradition will be defended," Wulff told ZDF.

Ireland was the only country in the EU to hold a referendum on the EU's new treaty, while the other 26 member states passed it through their parliaments. The Irish rejected the treaty in June, stalling the bloc's constitutional process. dpa

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