22/12/2006 (Agence Europe) - The European Commission has sent Belgium a formal request (a 'Reasoned Opinion') to end discrimination against foreign charities. Belgium allows tax relief for gifts to charities, on condition that they are established in Belgium. Charities in other Member States are excluded from the relief. The Commission considers that this discrimination is contrary to the free movement of capital guaranteed by Article 56 of the EC Treaty, confirmed by the European Court of Justice in its ruling on Stauffer, Case C-386/04 of 14 September 2006. In reply to the letter of formal notice that the Commission sent earlier Belgium acknowledged the infringement, but it did not indicate when and how it would eliminate it, nor how it would apply EU law in the period before the new rules would enter into force. The Commission has therefore decided to move to the second stage of the infringement procedure. The Commission has taken up similar cases against Ireland, Poland and the United Kingdom. (mb)