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VW Scandal Prompts EU Push for More Centralized Approval Regime

  • Plan to overhaul regulatory system foresees possible EU fines
  • European Commission's plan may face opposition by governments
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European Union regulators are risking a clash with EU governments by seeking greater authority over the approval of car models in response to Volkswagen AG’s emissions-test deception.

The European Commission, the EU’s regulatory arm, plans to propose more centralized market oversight and greater independence of vehicle-testing organizations, according to a person familiar with the draft legislation. The proposal would empower the commission to fine carmakers for breaches of environmental or safety standards, according to the person, who spoke on condition of anonymity because the draft law has yet to be presented.