EU to have oversight after Volkswagen scandal

The European Commission has tabled legislation seeking greater oversight to ensure car manufacturers "strictly comply" with safety, environmental and production requirements following the Volkswagen scandal.

Under current rules, national authorities are solely responsible for certifying that a vehicle meets all requirements and for policing manufacturers’ compliance with EU law.

The commission said the proposal tabled on Wednesday will seek to make vehicle testing “more independent” and increase surveillance of cars already in circulation. “Greater European oversight will strengthen the system as a whole,” it said in a statement.

The commission was already reviewing the framework for motor vehicles prior to the Volkswagen revelations. It concluded there was a need for more “far-reaching reform” to prevent cases of non-compliance from reoccurring.

The current type approval system is based on mutual trust. Once a car is certified in one member state, it can move freely throughout the EU. While the EU sets the legal framework, national authorities are fully responsible for checking car manufacturers’ compliance.

The draft regulation on the approval and market surveillance of motor vehicles maintains the principle of mutual recognition, which is at the core of the EU single market, but seeks to “correct the flaws in the system”.

The proposals will seek to “reinforce the independence and quality” of testing; introduce an effective market surveillance system to control the conformity of cars already in circulation; and to reinforce the type approval system with greater European oversight.

European Commission vice-president for jobs, growth, investment and competitiveness Jyrki Katainen said "everyone must play by the rules" in a single market where goods circulate freely.

“The Volkswagen revelations have highlighted that the system which allows cars to be placed on the market needs further improvement,” he said.

“To regain customers’ trust in this important industry, we need to tighten the rules but also ensure they are effectively observed. It is essential to restore a level playing field and fair competition in the market.”