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UPDATE 1-VW to offer extended guarantee but no money back - EU official

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BRUSSELS, June 14 (Reuters) - Volkswagen has agreed to offer an extra two-year guarantee but no compensation to European customers in talks with Europe's consumer rights chief after the German carmaker was caught cheating on emissions tests, a European Commission spokesman said on Wednesday.

EU officials have piled pressure on VW to compensate European customers after it admitted to U.S. regulators that it installed illicit software in as many as 11 million diesel vehicles sold worldwide -- the majority of them in Europe.

An offer to extend vehicle guarantees would be the first step from the company to respond to pressure from Brussels in more than one year since the Dieselgate scandal broke. VW has previously said European clients would receive a fix to bring vehicles in line with EU law.

The EU's commissioner for consumer affairs, Vera Jourova, has held repeated meetings with VW executives over the gap in VW's approach to European customers while offering cash payouts to U.S. owners of its cars.

But the European Union is limited in what it can do to pressure the company as power for market surveillance currently lies with national capitals. (Reporting by Alissa de Carbonnel, editing by Robin Emmott)