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Joining EU Stability Pact not in Hungary's best interest, says ministry

It is not in Hungary's interest to join the European Union Stability Pact as one of the key points of the agreement is the harmonization of the scale of corporate taxes, the National Economy Ministry said in a statement sent to MTI on Monday.

Hungary is taking all such steps that appear in the EU structural pact, and the government's recently unveiled structural reform program contains even more ambitious steps, but it is holding to the independence of its tax system, the ministry said.

The aim of the government's economic policy is to see that "Hungary is the most favorable investment target for businesses", which is why tax harmonization is not in the country's interest, it added.

The Hungarian government and the National Economy Ministry are in full agreement with the goals of the European Union Competitiveness Pact: increasing competitiveness, raising employment, improving fiscal sustainability and guarding financial stability are all aims that coincide with Hungarian interests, the ministry said.

Hungarian Foreign Minister János Martonyi said on Friday that Hungary had not yet decided whether it will join the competitiveness pact proposed by France and Germany that would eliminate some economic policy differences between Eurozone members. "We fully agree with the text of the pact," Martonyi said, but added that Hungary "has never liked tax harmonization".