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EU plans legal challenge against Germany's road toll-Die Welt

BERLIN (Reuters) - The European Commission plans to launch a legal challenge against Germany for violating European law with its planned road toll, which critics say unfairly targets foreigners, a German newspaper reported on Saturday.

Citing sources in the European Commission, Die Welt said the proceedings could be launched at the start of the summer holidays in August.

"We will initiate infringement proceedings against Germany due to the road toll, because it discriminates against foreign drivers and therefore violates EU law," the paper quoted an unnamed European Commission representative as saying.

A spokesman for the Commission said it would assess the toll once it had been formally signed into law by the German President.

"The Commission had several exchanges with the German authorities on the plans over the past months. At every occasion the Commission made clear that any plans to introduce the PKW-Maut (road toll) need to be compatible with EU law," the spokesman said, declining comment on whether any action was planned because policy was to not comment on speculation.

Germany's parliament in March approved the toll, which will force foreign car drivers to pay up to 130 euros ($143) a year for using Germany's motorways.

German drivers would also pay the toll but would be compensated with a corresponding reduction in automobile taxes, which critics inside and outside the ruling grand coalition say contravenes EU rules.

($1 = 0.9102 euros)

(Reporting by Caroline Copley, with Julia Fioretti in Brussels; Editing by David Holmes)