Press Release: Direct tax: Commission decides to refer Germany to the Court over legislation concerning the pension-savings grant (so called “Riester-Rente”)

The European Commission decided to refer Germany to the European Court of Justice for not amending its legislation on the pensions-savings grant (Altersvorsorgezulage, so called Riester-Rente). A pecuniary advantage is given to persons building up a supplementary pension under the condition that they are fully liable to income tax in Germany. The Commission considers that the unequal treatment of residents and non-residents is contrary to the Treaty provisions on the free movement of workers and persons. Germany has not changed its legislation despite the Commission's formal request, in the form of a Reasoned Opinion, of 19.12.05 (IP/06/32).