(FRANKFURT) - The German state of Lower Saxony wants to preserve a minority blocking stake in Volkswagen to ensure the company's stability, regional premier Christian Wulff said Thursday in a press interview.

"After the war, Volkswagen was destined to become a group owned by the people, with its shares distributed widely. There was not supposed to be a dominant shareholder," Wulff told the daily Die Welt.

"That is why it should be possible to conserve a minority blocking stake, as in the past," he added.

The Europe's biggest carmaker is the focus of a determined push by luxury sports car maker Porsche to prevent new legislation that would preserve the state's veto over strategic decisions and which has sparked tension between European Union and German authorities.

Porsche is in the process of taking over VW but under a current and a proposed German law, strategic decisions by the carmaker must still be approved by a majority of at least 80 percent.

Lower Saxony, where VW is based, holds a stake of just over 20 percent, giving it a de facto veto over decisions such as plant relocations.

Porsche reacted swiftly to Wulff's comments, saying in a statement that it "sees in the request by premier Wulff an unacceptable attempt to influence the VW supervisory board."

"It is clear" for Porsche that Lower Saxony's position would be rejected during a general assembly of VW shareholders on April 24, which promises to be lively.

The current VW law was overruled by a European court in October following a complaint by the European Commission but the German government wants to enact new legislation that would retain the provisions overall while addressing clauses specifically banned by the court's ruling.

"The VW story is a success story," Wulff said.

"It was made possible in part because Lower Saxony brought stability" to the group owing to its dominant position, he added.

But Porsche is determined to modify VW's statutes in line with that of other German companies, with a 25 percent stake required to block strategic decisions.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.