Community most-favoured-nation treatment : one step closer to the multilateralization of income tax treaties in the European Union?

The European Court of Justice ruled on 5 November 2002 that eight EU Member States acted illegally when they concluded bilateral air services agreements with the United States. The background and outcome of the ECJ ruling is considered and the possible impact on European income tax law, including tax treaty-making power and most-favoured-nation treatment, is examined.