Fleet News

Denmark breaching rule on freedom of movement

DENMARK may be ordered to liberalise rules restricting foreign- registered company car use in the country by Danish residents. Francis Jacobs, an advocate general of the European Court of Justice (ECJ), has recommended that the full court finds these rules in breach of Denmark's EU treaty obligations on freedom of movement across Europe.

He declared illegal 1999 rules insisting that such company car drivers only use their vehicles in Denmark where the foreign business providing the vehicle supplies their 'principal employment' and also Danish road tax is paid under a formula assessing the amount of time the car is used in Denmark (for private and business purposes).

Jacobs also found against older regulations, eased by this 1999 rule, blocking Denmark residents working in a neighbouring country (effectively Germany and Sweden) from using a company car registered in that state.

This law still applies, for instance, where the German or Swedish employer is not a Danish resident's main employer.

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