Press Release: State aid: Commission opens in-depth investigation into proposed German capital investment law (MoRaKG)

The European Commission opened a formal investigation under EC Treaty state aid rules into planned German tax advantages for venture capital companies and individuals investing in target enterprises. The German authorities consider that none of these measures fall under the state aid rules. The Commission had, however, doubts because the measures seem to favour certain companies in a selective manner. The Commission had further doubts on the compatibility of the measures with the EU guidelines on risk capital, in particular because large companies and companies in difficulties seem to be included in the scope of the target enterprises. The opening of an in-depth investigation gives interested parties the possibility to comment on the proposed measures. It does not prejudge the outcome of the procedure.