Economy
Hungary may join EU's competitiveness pact later - Martonyi
Martonyi criticised, albeit not directly, larger EU member states for they expect periphery countries, including Hungary, to take steps that are unfavourable for them in economic policy terms. “In order to be competitive we need to maintain our independence in taxation; we need tax competition," Martonyi said.
He said Hungary has always made it clear which are the points it cannot agree with. Members outside the euro zone can join the competitiveness pact at a later date too, he said. Hungary also has an option to join when they clarify what should be meant by the harmonisation of corporate taxes, the minister added.
He stressed that staying out of the pact for now does not mean Hungary does not want to adopt the single European currency. Quite the contrary, Martonyi said, adding that when Hungary meets the euro zone criteria it will want to join the EMU.
Prime Minister Viktor Orbán said in Parliament yesterday that the government had decided to stick to five of the pact's six principles. The point unacceptable to Hungary is the harmonising of corporate taxes, which runs against the country's interests, he said.
"We don't have the slightest intention of raising taxes; we shan't take part in a pact which would demand this of us," he said.
He said Hungary has always made it clear which are the points it cannot agree with. Members outside the euro zone can join the competitiveness pact at a later date too, he said. Hungary also has an option to join when they clarify what should be meant by the harmonisation of corporate taxes, the minister added.
He stressed that staying out of the pact for now does not mean Hungary does not want to adopt the single European currency. Quite the contrary, Martonyi said, adding that when Hungary meets the euro zone criteria it will want to join the EMU.
Prime Minister Viktor Orbán said in Parliament yesterday that the government had decided to stick to five of the pact's six principles. The point unacceptable to Hungary is the harmonising of corporate taxes, which runs against the country's interests, he said.
"We don't have the slightest intention of raising taxes; we shan't take part in a pact which would demand this of us," he said.
