Case C-249/06: Action brought on  2 June 2006  — Commission of the European Communities v Kingdom of Sweden
Date: 2006-07-29
Institutions: Court of Justice
Subjects: European Commission, Sweden, Viet Nam, action for failure to fulfil an obligation, bilateral agreement, foreign investment, investment abroad, investment policy

29.7.2006

EN

Official Journal of the European Union

C 178/27

Pleas in law and main arguments

Pleas in law and main arguments

the territorial

Infringement of freedom of establishment (Articles 43 and 48
EC and Article 31 EEA):
restriction, which
consists of the fact that only expenses incurred in respect of
R& D and IT activities actually carried out in Spain may benefit
from the deduction of the corporation tax allowance, is a factor
which restricts the freedom of establishment of Spanish compa-
nies which invest in R&D and IT outside Spain, benefiting
companies making the same investment in Spain, in particular,
undertakings which have their main office in another Member
State and which operate in Spain via a secondary establish-
ment.

Infringement of the freedom to provide services (Articles 49 EC
and 36 EEA): the costs of R&D and IT activities subcontracted
outside Spain are not eligible for the deduction of the corpora-
tion tax allowance. That limitation constitutes an obstacle to
the freedom to provide services, provided for in the EC Treaty.

The agreements are incompatible with Community law since
they do not permit the application of Community measures
based in Articles 57(2) EC, 59 EC and 60 EC. Further, Sweden
has not taken steps to rectify the situation. Thus Sweden has
failed to fulfil its obligations under the second paragraph of
Article 307 EC to take all appropriate steps to eliminate all
incompatibilities between the Treaty and the investment agree-
ments.

Action brought on 6 June 2006 — Commission of the
European Communities v Federal Republic of Germany

(Case C-252/06)

(2006/C 178/44)

Language of the case: German

Action brought on 2 June 2006 — Commission of the
European Communities v Kingdom of Sweden

Parties

(Case C-249/06)

(2006/C 178/43)

Language of the case: Swedish

Parties

Applicant: Commission of the European Communities (repre-
sented by: C. Tufvesson, B. Martenczuk and H. Stølvbæk, acting
as Agents)

Defendant: Kingdom of Sweden

Applicant: Commission of the European Communities (repre-
sented by: G. Braun and N. Yerrell)

Defendant: Federal Republic of Germany

Form of order sought

The applicant claims that the Court should:

— declare that, by failing to adopt the laws, regulations and
administrative provisions necessary to implement Directive
2002/92/EC (1) of
the
Council of 9 December 2002 on insurance mediation, or,
in any event, by not communicating these provisions to the
Commission, the Federal Republic of Germany has failed to
fulfil its obligations under that directive;

the European Parliament and of

— Order the Federal Republic of Germany to pay the costs.

Form of order sought

Pleas in law and main arguments

— Declare that, by failing to take appropriate steps to elimi-
nate the incompatibilities between Sweden's bilateral invest-
ment agreement with the Socialist Republic of Vietnam,
together with 16 further bilateral
investment agreements,
and the EC Treaty, the Kingdom of Sweden has failed to
fulfil its obligations under the second paragraph of Article
307 EC;

— order the Kingdom of Sweden to pay the costs.

The period for implementing the Directive expired on 15
January 2005.

(1) OJ L 9, 2003, p. 3.