Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

EU ministers agree car approval rules after dieselgate

Published 29/05/2017, 13:18
© Reuters. EU flags are lowered at half-mast in honor of the victims of the Manchester attack, outside the EU Commission headquarters in Brussels
VOWG_p
-

By Robert-Jan Bartunek

BRUSSELS (Reuters) - EU ministers agreed on Monday on draft new rules for approving cars for sale in order to prevent a repeat of the Volkswagen (DE:VOWG_p) emissions scandal and giving the European Commission the power to fine cheating manufacturers directly.

The rules, which still have to be discussed with the European Parliament before becoming law, are a response to the 2015 dieselgate scandal when German carmaker Volkswagen was found to have used software to cheat U.S. diesel emission tests.

Under the present system, national bodies such as Germany's KBA authority, have the power to clear new vehicles for the whole European Union and can also revoke those licences.

The new rules will allow other national authorities to review such decisions and also give the European Commission the power to carry out spot checks and fine manufacturers up to 30,000 euros per vehicle if they are found to be cheating.

In the run-up to Monday's ministerial meeting in Brussels, European diplomats had said Germany was reluctant to hand more market surveillance powers to Brussels despite the fallout from the VW scandal.

German junior economy minister Matthias Machnig told fellow ministers at the meeting his country was in favour of strengthening oversight, but added he wanted assurances on how to avoid a conflict between different agencies.

Since the Volkswagen scandal, investigations of various other carmakers revealed on-road nitrogen oxide (NOx) emissions as high as 15 times the regulatory limits, as well as the use of devices to mask real vehicle emissions.

© Reuters. EU flags are lowered at half-mast in honor of the victims of the Manchester attack, outside the EU Commission headquarters in Brussels

"No week goes by without new revelations, new investigations," EU Commissioner Elzbieta Bienkowska told ministers. "It will never finish if we do not have a more robust system in Europe."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.