The European Commission has brushed aside opposition to removal of the so-called Volkswagen Law by German Chancellor Angela Merkel and plans to pursue the matter in the European Court of Justice (ECJ).

Speaking to just-auto, Brussels internal market spokeswoman Catherine Bunyan said the Commission would be sending Germany a "legal final warning", a "reasoned opinion" that it would be taken back to the ECJ if it did not comply with an earlier ruling that German government authority over VW broke European Union capital movement laws.

She stressed that in this latest case, the Commission would ask judges to levy potentially massive daily recurring fines of Euro 1,000s - payable until Germany complied with the earlier ruling and amended its VW law. This gives a power of veto to the state of Lower Saxony on all major decisions involving VW.

Chancellor Merkel this week told staff and workers at VW's headquarters in Wolfsburg "the VW law will stay.''