The Danish Ministry of Taxation has announced that the government has decided to remove the right to the special deduction for so-called hybrid core capital, which had been afforded to banks as a result of the financial crisis. The government has decided that banks no longer need such special treatment as there are now far better equipped to manage capital issues. Further, the special deduction needs to be removed to ensure that no doubts can be raised as to whether Danish rules are in accordance with EU State aid rules.