EU seeks powers over car regulation after VW scandal

The EU on Wednesday pushed to take control of car regulation in Europe in the wake of the Volkswagen scandal, unveiling proposals that would grant Brussels new powers to impose huge fines and recall vehicles.

The European Commission, the executive arm of the 28-nation EU, said carmakers found cheating on pollution tests could face a fine of 30,000 euros ($32,600) per vehicle, with non-compliant cars wrongfully approved taken off European roads.

"The commission is proposing a major overhaul of the so-called EU type approval framework," the European Commission said in a statement, referring to the system to approve cars for use on European roads.

The commission would also win powers to police national regulators with random checks by Brussels-led teams, amid widespread criticism that regulation currently handled by member states is too cosy with the auto industry.

"With our proposals today we will raise the quality and independence of vehicle testing and improve the oversight of cars already in circulation," EU Industry Commissioner Elzbieta Bienkowska said.

Brussels further demanded that pollution testing in member states no longer be paid for by car companies, but instead through a government fund and therefore halting any danger of a conflict of interest in granting approvals.

But the proposals will take at least months and possibly years of negotiations among EU lawmakers and national governments before implementation, almost certainly including a furious fight from Germany's powerful car lobby.

"It boils down to giving away national sovereignty to Brussels," Bas Eickhout, a Dutch member of the European Parliament, told Bloomberg.