Germany said Friday that a revised version of its controversial `Volkswagen law`, approved in the German parliament, complies with demands laid down by the European Court of Justice.

Berlin has `met the requirements of the Court of Justice` in the bill passed late Thursday, a spokeswoman for the justice ministry told reporters.

The revised legislation retains a clause allowing the German state of Lower Saxony -- where Volkswagen is based -- to hold a blocking minority in the company with a 20-percent stake.

Shareholders in German companies normally need to own 25 percent of a firm before they can block strategic decisions.

This effective state veto is bitterly opposed by Porsche, the sports car maker which controls 74 percent of Volkswagen, Europe`s biggest carmaker.

The law, which dates back to 1960, has also been the subject of a long-running spat between Germany and the European Commission, which says it violates European Union rules on the free flow of capital.

Last year, the EU`s top court ruled against the law, forcing Berlin to come up with this latest version.

`It`s now up to the European Commission to react,` the spokeswoman said.

In a letter this week addressed to German parliamentarians, Porsche`s boss made a last-ditch effort to prevent the adoption of the new law.

`There is no objective reason why Volkswagen continues to benefit from rules which go much further than those applied to Daimler, BMW or Siemens,` Wendelin Wiedeking wrote in the letter obtained by AFP.