Business World

Friday 24 March 2017

Czechs and Hungarians turn backs on new European treaty

THE PRIME Ministers of Hungary and the Czech Republic have said they will not give up their countries' independent tax policies to join a new European Union treaty meant to tackle the group's debt crisis.

Czech Prime Minister Peter Necas said a common EU tax policy "would not mean anything good for us," while Hungarian Prime Minister Viktor Orban said Hungary needed to keep the right to set its own tax policies to maintain its competitiveness.



Mr Necas said his country wanted to take part "actively" in the negotiating process of the new EU treaty but wanted more details on how it might affect the non-eurozone countries like Hungary and Czech Republic.



Czech financial officials say they do not recommend setting a date to adopt the euro because of potential costs associated with the debt crisis.



They say the Czech Republic would face extra costs if it were to join because it would have to contribute to the eurozone's bailout fund.



All non-euro countries in the EU, except Britain and Denmark, are officially committed to join the euro at some time.



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