Press Release: State aid: Commission welcomes phasing out of Spain’s tax incentives for investment abroad

The European Commission on 1 June 2006 welcomed the notification by the Spanish Government that it had formally accepted the Commission recommendation of 22 March 2006 (see IP/06/355) to gradually abolish the tax advantages in favour of Spanish companies investing abroad by the end of 2010 at the latest, as they distorted competition and trade within the Single Market. Spain’s acceptance rendered the abolition of the incentives legally binding under EC Treaty state aid rules and was to put an end to a long-lasting system of operating aid in Spain.

European Commission: DG Competition: Competition Policy Newsletter, No.2, Summer 2006, p59 http://ec.europa.eu/comm/competition/publications/cpn/cpn2006_1.pdf

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