The role of the German state of Lower Saxony in Porsche's ongoing attempt to takeover Volkswagen has been well publicized. The fight between the EU and Germany over the exact nature of the law that enables Lower Saxony to block strategic decisions with a minority share has been on the back burner since last October, however, when the European Commission struck down the law.

But now that battle is resuming as Germany's government has enacted a new law that essentially accomplishes the same thing.

The sticking point between the EU and Germany is the 20% blocking minority clause. Other German equities laws only allow a 25% blocking minority, and Porsche - and the EU - want the law changed to conform to that standard.

The new law retains the 20% level from the old law, although it also contains a clause that will remove that portion of the threshold if the EU opposes it, reports Automotive News. Whether the blocking minority percentage minimum would then effectively rise to the standard 25% or not is unclear. The law goes before the German cabinet on May 27.

Porsche currently holds a 31% stake in VW, and wishes to raise that interest to more than 50%, although exactly how much more has been a matter of some speculation. If the law is passed, it is expected that the European Commission will move to scrap the new law as well.

According to an EU Internal Market Commissioner, "The Commission expects that all three provisions and therefore the blocking minority as well will be abolished in order to implement the court's judgment."

The legislative face-off is the latest development in the saga since Porsche officials found a baby monitoring device behind one of the sofas in a hotel suite used by Porsche CEO Wendelin Wiedeking during his visit to a VW board meeting. The German media credited VW personnel with the placement of the device in an effort to spy on Porsche.