As Minister for National Economy Mihály Varga stressed, he fully agreed with the main principles of the Investment Plan for Europe discussed at an informal ECOFIN session in Luxembourg. Through the Plan, the Government of Hungary aims to facilitate the realization of as many projects as possible in Hungary, he stated.

At the meeting, EU finance ministers dealt with issues such as the igniting of European economic growth, the deepening of economic policy cooperation and taxation questions.

Together with the Vice President of the European Commission and the President of the European Investment Bank, finance ministers exchanged views on the progress made with regard to the Investment Plan for Europe. One of the three main pillars of the Plan, the European Fund for Strategic Investments (EFSI) focuses on improving current low investment levels across Europe through the engagement of private financing in order to reinvigorate the economy.

As Mihály Varga pointed out, Hungary agreed with the main directions of the Investment Plan for Europe, but it is important that member states with less highly developed financial markets must also be granted the appropriate share of funding.

This Plan – provided it is implemented efficiently – may provide the opportunity for igniting growth in the entire EU, he added. Due to aggressive tax planning and taxation competition between member states, the real tax burden of enterprises has been significantly reduced.

Aggressive tax planning and the drop in the countries’ tax revenues are unfavourable phenomena; therefore Hungary in general supports renewed and coordinated efforts for combating tax avoidance and tax fraud. According to Hungary’s legal standpoint, however, the EU-wide introduction of a minimum effective tax rate would not result in fair tax competition but it would violate tax sovereignty, which is also guaranteed by EU treaties. Tax competition is a healthy component of an economy and it cannot be violated, he added.

On Saturday, finance ministers are scheduled to discuss the deepening of the Economic and Monetary Union (EMU). The agenda published in June by five EU institutions (European Commission, European Council, Eurogroup, ECB and European Parliament) includes proposals aimed at bolstering the European monetary union and closer integration.

Hungary backs efforts designed to reinforce the Euro-zone, but we believe that member states which still have their national currencies must be allowed to keep their manouvering room and the free choice of a convergence roadmap.

(Ministry for National Economy)