Brussels, 05/02/2003 (Agence Europe) - The European Commission has sent a formal request to Denmark to amend its legislation, under which pension contributions paid to non-Danish funds are not tax deductible while contributions paid to domestic funds are. It also sent official requests for information to Belgium, Spain, France, Italy and Portugal on similar discriminatory tax provisions. It considers that the preferential treatment enjoyed by domestic pension funds is incompatible with the EC Treaty, which guarantees the free provision of services and the free movement of workers and capital. Commissioner Frits Bolkestein said: "Tax discrimination against foreign pension funds is unacceptable. Workers should not be forced for tax reasons to take out new pension insurance when they take up a job in another Member State and employers should be able to set up pan-European pension funds. Unless Member States stop discriminating against foreign pension funds, we will not have a fully functioning Internal Market for occupational pensions even when the Pension Funds Directive is adopted", he concluded.