I just fixed this exact problem on my 2002 VW Passat.
The following are instructions, assuming that the mechanical mechanism is still working and your problem is the tiny spring inside the plastic lock housing has broken or come loose.
Here's what I did:
1.) Open trunk fully open
2.) turn facing away from the rear bumper and sit on the bumer
3.) lean back a bit until your head is against the trunk (assuming your not over 6'2")
4.) look inside the handle indentation where the felt cover meets the plastic cover. You should see a screw (torx - 6 sided star shape).
5.) remove the screw and the other one just like it in the second handle indentation.
6.) pry the felt cover away from the trunk lid. Don't worry, you won't break it. But don't be too rough. 8 or so metal clips holding the felt and plastic to the trunk should pop out as you apply force. Do one at a time until they have all been pulled out. Note that the plastic portion is attached to the felt and it all comes out as one piece. It ends up going back in no worse for wear.
7.) There is a tiny lever that moves back and forth. You need to attach a spring or elastic band around that lever to pull it to the left. I used a tiny bungee cord. You only need to apply a bit of elastic force to the tiny lever so that it moves to the left. Notice that if you unlock the trunk it pushes the lever to the right.
8.) Test it. Your trunk should now be closing and opening properly.
9.) put the felt and plastic cover back in place. Make sure all of the metal clips are in place in the cover and are not stuck in the metal trunk frame. If they are take them out of there and plug them back into the cover. Line up the first few slots and pop them back in one at a time. Put the 2 screws back in to the handle indentations.
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