The case was brought before the ECJ by a German couple who were denied tax credits by their own government after they chose to send their children to a private school in Scotland. According to German law, parents may claim tax relief with respect to school fees at private school - but only on German soil.

After hearing submissions from the parents and the German government, the ECJ upheld the parents' claim on the grounds of freedom of movement and free movement of services. The court said discrimination was not permitted.

According to the Sunday Times report, Maltese parents may also benefit from this decision, since they do not currently receive any tax credits if they send their children abroad for schooling. The ECJ stated: "It would be incompatible with the right to freedom of movement were a citizen to receive in the member state of which he is a national, treatment less favourable than he would enjoy if he had not availed himself of the opportunities offered by the EC Treaty in relation to freedom of movement."

Referring specifically to the EU right of free movement of persons, the court added that "these opportunities could not be fully effective if a national of a member state could be deterred from availing himself of them by obstacles placed in the way of his stay in the host member state by legislation of his state of origin penalising the mere fact that he has used them".

According to the provisions of the EU treaty, EU jurisprudence is to be followed in all member states, which means that the Maltese system of granting tax credits to Maltese parents who send their children to local private schools will now also have to be extended to those who send their children to schools in another member state.