Brussels,Vw Set To Resolve Aid Dispute

German officials are understood to have offered a temporary subsidy freeze to avert imminent legal action from the commission. The commission is due to discuss at a regular meeting how to proceed and whether to seek an injunction in the European Court to force VW to pay back the funds.

Kurt Biedenkopf,Prime Minister of Saxony, welcomed Santer's comments. Speaking on German breakfast TV, he said: