The European Commission is set to delay by a week a discussion on possible action against a German law on Volkswagen to avoid clashing with a meeting of finance ministers on March 19, a EU source told Reuters on Wednesday.

The discussion had been set for the same day. The Commission had suspended a previous debate on March 5 after divisions emerged within the 20-member European Union executive, EU officials told Reuters.

The news agency said the Commission is considering whether to take legal steps against a German law which gives the regional government of Lower Saxony a blocking minority in carmaker giant Volkswagen.

The source told Reuters newly elected Lower Saxony state premier Christian Wulff would come to Brussels on Wednesday to meet Commission President Romano Prodi and Internal Market Commissioner Frits Bolkestein.

Reuters noted that the Volkswagen law has been under the EU executive's scrutiny as part of a campaign against rules which restrict the free movement of capital in the EU.

Germany argues that the law safeguards local jobs and ensures that the manufacturer does not fall under the control of a foreign company, Reuters said.