Solving Dieselgate: First steps by EP

Today the European Parliament was asked to vote on two Reports submitted by two of its committees – IMCO and EMIS in order to deal with the problems that Dieselgate had created and which lack of action on the part of national regulators had perpetuated.  This lack of action was evident in the case of Volkswagen.  This inaction perpetuated the emissions of high NOx*, with serious consequences on both environment and people’s health but shielded powerful carmakers from penalties.

The Parliament’s plenary endorsed a draft law seeking to beef up the current, flawed car testing system. In a separate vote, MEPs also called for affected Dieselgate consumers to be financially compensated.  The EU Parliament adopted the following landmark measures to reduce the chances of another Dieselgate scandal in Europe:

  • A stronger role for the EU Commission to test cars and ensure Member States are applying rules equally across Europe.
  • Checks on a minimum of 20% of new models once on the road across Europe.
  • Greater transparency of test results which would mean that car manufacturers, Member States and testing bodies are held more accountable.
  • A split in the financial relationships between car makers and privately owned testing services.
  • Compensation for consumers impacted by the Dieselgate scandal – such as VW owners – and that a recall is not a sufficient form of reparation.
  • Car maker liability if consumers face damages as a result of non-conformity.
  • The Commission to come forward with a proposal for an EU wide collective redress scheme for consumers.

After this vote Monica Goyens, BEUC’s Director General, said:

 “Today’s vote shows the Parliament has drawn the right lessons from the emissions scandal and is standing on the consumer’s side. Consumers expected EU legislators to acknowledge the malpractices of the car industry and the failure of Member States to properly test cars. The opaque testing system currently favours carmakers over consumers and this vote helps reverse the tide. 

The EU Parliament has heeded our call for robust measures to fix the flawed testing system. More car checks, better oversight of national authorities and cutting the financial ties between car makers and inspectors are crucial measures that are needed to avoid another Dieselgate. However, it is a missed opportunity that the Parliament rejected the idea of an EU agency to oversee car testing, which would be the ultimate way to improve the system.”

The setting up of an EU agency to oversee car testing was seen as a more definite way to ensure that another Dieselgate would not occur.  However, the EU Parliament did not approve this agency, a move which many considered it as a blow.  It should be noted when asked about the fact that no European testing agency noted the fraudulent device used by Wolkswagen, the US Environmental Protection Agency director said that only a central European Agency with the resources and power to test cars and trucks will prevent another Dieselgate scandal.

As we said, this is the first step as the European Council now needs to work with the Parliament to adopt a final agreement.  This would not be an easy task as the car industry has a very influential lobby in Germany, France and Italy.


*  The 2015 EEA figures have for the first time put the number of premature deaths caused by NO2 excess emissions across Europe at 72,000 annually. A Report attributed around 1200 deaths due to the Volkswagen scandal.

EU Competition regulator to rule on Delta, Virgin airline deal

EU antitrust regulators will decide by June 20 whether to clear a bid by Delta Air Lines for a 49 percent stake in Virgin Atlantic, which would help Delta to better compete with rivals United Continental and American Airlines.

Delta unveiled the deal in December last year, which involves setting up a joint venture which will let the U.S. carrier and its British peer offer more flights at Heathrow, Europe’s busiest airport.

Antitrust lawyers say regulators may be concerned about the reduced incentive for the two companies to compete against each other once they set up the joint venture.

Airlines typically offer to give up airport slots or offer rivals access to their frequent flyer programmes to allay such worries.

The ruling is expected to be issued by June 20th, 2013