The European Court of Justice (ECJ) issued its decision in the Rewe Zentralfinanz case (C-347/04) on 29 March 2007, concluding that the German rules that restricted the ability of German parent companies to write-down the value of the shares in loss-making nonresident participations while allowing such write-downs in respect of German participations violates the freedom of establishment principle of the EC Treaty. The legislation at issue only allowed the write-down against positive income of the same kind from the same state.