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

The European Commission on 22 March 2006 formally requested Spain under EC-Treaty state aid rules to abolish tax incentives in favour of Spanish companies investing abroad. The Commission requested that the incentives be gradually eliminated by the end of 2010, as they were distorting competition and trade within the Single Market. Spain had one month to accept this request, failing which the Commission would be able to open a formal state aid investigation.