Matthew Lynn Matthew Lynn

Why has the EU let German car manufacturers off the hook?

(Getty images)

Two billion? Five billion? Perhaps ten billion to make it a nice round number? For colluding on diesel emissions you might think the European Union would hand out a pretty stiff fine to the big German auto-manufacturers. After all, it has hit American tech giants with huge penalties for far lesser transgressions. 

Yet in the end, its response was predictable: the EU has largely let them off the hook. The reason? It turns out that protecting German auto manufacturers is what the Commission really cares about – and nothing else matters.

According to Margrethe Vestager, the EU’s anti-trust chief, German manufacturers ‘possessed the technology to reduce harmful emissions beyond what was legally required under EU emission standards’ but they chose not to. That comes on the back of the diesel emissions scandal, when VW systematically fixed its vehicles so they appeared to have lower emissions than they really did. 

The EU likes to pretend it is a rules-based organisation

In this latest case, thousands of cars may have been sold that were far more polluting than they needed to be.

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