As noted in its June 2026 infringements package, published 3 June 2026, the European Commission has sent a letter of formal notice to Germany for failing to comply with EU rules on freedom of establishment, considering that Germany's investment deduction allowance for SMEs discriminates against cross-border investments within the EU and EEA.
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Commission calls on Germany to end discriminatory conditions of an investment deduction allowance for SMEs investing abroad
The European Commiss…