Monday

26th Jun 2017

VW 'seems' to have broken EU laws

  • Jourova: 'We, as the commission, cannot behave as though nothing had happened' (Photo: ec.europa.eu)

The European Commission is looking at how to help consumers to enforce potential compensation claims against Volkswagen, whose emissions cheating seems to have breached two EU laws.

But Vera Jourova, the commissioner responsible for consumer rights, said on Monday (5 September) in Brussels that the patchwork of different legal regimes in EU states would make it more “complicated” for Europeans to seek redress than for their US counterparts.

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  • Former commissioner Antonio Tajani (l), now an MEP, had been warned about emissions discrepancies but did not investigate (Photo: European Commission)

She said the German carmaker appeared to have fallen foul of two EU laws - the consumer sales and guarantees directive and the unfair commercial practices directive.

“These pieces of legislation set high standards for all the member states to enforce in case these rules are breached. It seems to be the case in so-called Dieselgate,” she said.

“We, as the commission, cannot behave as though nothing had happened.”

She noted that the EU consumer sales directive could oblige VW to replace dodgy cars, to repair them, or to offer a reduction in price.

But she said it would be up to independent courts at national level to issue rulings on financial compensation.

She also said that in the US, national authorities can seek collective compensation for consumers, but that in some EU countries it would be the job of consumer NGOs to act, while in others individuals would have to “take it into their own hands” to challenge the giant company.

"In the European Union, the way to damages is more complicated than in the United States," she said.

Jourova already asked for written information from consumer groups and national regulators on the case.

She got the answers in late August.

She said everybody had complained about lack of information from VW, while Die Welt, a German newspaper, reported on Monday that 20 member states had concluded that VW broke one or both of the EU laws.

Next steps

Jourova plans to meet face-to-face with the groups and regulators on 8 September and 29 September before deciding how to proceed.

She said she would also meet VW lobbyists “on their own request”, adding: "It is not my intention to come with strong action without fair communication with the company."

Jourova did not specify what she meant by “strong action”, but she indicated that she has little power other than to ensure that national regulators have properly implemented the “breached” EU laws.

"I cannot say I am going to take a stricter approach. I want them [member states] to look at the valid legislation and see what they have to do,” she said.

“We expect all the authorities to act in the strong interest of consumer groups.”

VW issued a statement to the Reuters news agency saying that Jourova’s analysis was unfounded.

"Notwithstanding, in the meantime we are in regular and constructive dialogue with the Brussels authorities,” it said.

VW has set aside €13.2 billion to pay off unhappy US clients, but is also facing law suits by regulators in at least three states that could see the price tag go up.

Harsh light

It has refused to pay anything to EU customers whose cars have polluted the air more than the company had claimed.

VW argues that because laws in the EU and the US are different, Europeans are not entitled to the same type of redress.

The affair has also cast a harsh light on national EU regulators and on the EU commission.

A French parliamentary inquiry concluded in August that years of inaction by national authorities responsible for checking emissions in real life "constitutes incitement to fraud".

An ongoing European Parliament inquiry, as well as leaked commission memos obtained by EUobserver, has also indicated that the commission could have suspected there was a problem with carmakers cheating years ago, but failed to properly investigate abuses.

Investigation

Tensions rise again among Dieselgate MEPs

Centre-right MEPs want to put centre-left MEPs in the witness stand, and accuse the centre-left chairwoman of not being impartial.

Investigation

VW: EU's action plan is 'nothing new'

Consumer affairs commissioner Jourova said Volkswagen has "committed to an EU-wide action plan", but the promise contains little news value according to the carmaker itself.

Investigation

VW lobbyist met German EU commissioner

VW spent €2.8m on lobbying in Brussels in 2015. Earlier this year, it met with commissioner Oettinger to discuss "diesel emissions", even though it's not his portfolio.

EU approves rescue of Italian banks

The European Commission gave the green light to a €17-billion plan by the Italian government to save Banca Popolare di Vicenza and Veneto Banca.

Focus

EU and China move to fill US void

At a summit in Brussels, EU and Chinese leaders will attempt to deepen ties on trade and climate as US president Trump plans to pull out of the Paris climate deal.

Italy reaches EU deal on failing bank

After months of negotiations, the European Commission and Italy agreed on the terms of rescue for Monte dei Paschi di Siena bank, including job cuts, salary caps and private sector involvement in the bailout.

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