BRUSSELS, September 9, 2008 (AFP) - The European Commission will bring new court action against Germany in its long-running stand-off with Berlin over a law shielding Volkswagen from takeovers, a spokeswoman said Tuesday.

EU Internal Market Commissioner Charlie McCreevy, however, still has to put a formal proposal to his colleagues at the commission and a date has to be set, the spokeswoman said.

In June, the commission had warned that it could return the case to the European Court of Justice if Berlin failed to respond to its concerns that the contested law blocked the free flow of capital in Europe.

Last year, the European Union's top court ruled against a law giving the German state of Lower Saxony, which owns 20 percent of VW's shares, the ability to block company decisions.

Normally a blocking minority is only accorded to those owning more than 25 percent.