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1. Introduction: Some Basic Elements of Cross-Border Banking

On 6 March 2008, the Commission brought an action against Portugal before the Court of Justice of the European Union (CJUE) (hereinafter the Court) on the ground that:

by taxing payment of [outbound] interests more heavily than [the] payment of interest to entities resident in Portuguese territory, [it] imposes restrictions on the provision of mortgage and other loan services by financial institutions resident in other Member States and in States party to the EEA agreement.1

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