Ministry of Finance issues decree in response to ECJ decision Rewe Zentralfinanz

On 11 June 2007, the German Ministry of Finance published a decree in response to the decision of the European Court of Justice (ECJ) in the case of Rewe Zentralfinanz v. Finanzamt  Köln-Mitte (C-347/04). In its decision of 29 March 2007, the ECJ held that the German legislation, which restricts the right of a German-resident parent company to deduct losses incurred by that company in respect of write-downs to the book value of its shareholdings in subsidiaries established i…