Well known economists call on government to join Euro Plus Pact

"As responsible Hungarian economists, we call on Viktor Orbán's government to revise its position and approve the majority position in the EU summit," the petitioners, including former Socialist finance minister László Békesi and liberal economy minister István Csillag, said. Prime Minister Viktor Orbán announced earlier this week that Hungary would not be going to join the euro zone competitiveness pact for the moment because the country wanted to retain its independence on tax matters. The economists argued that the pact envisages uniform rules merely for calculating the tax base but does not rule out competition between the degrees of tax rates, and does not prevent Hungary from attracting foreign investment with lower tax rates. By adopting the pact, Hungary "would not give up its independence in tax matters", they said. "After a lost decade, we should not voluntarily get off the train of progress that would take us to the Hungarian euro", the petitioners said. The pact forms part of the package designed to increase financial stability in the euro zone, make the EU more competitive and step up economic coordination. It was approved by 17 euro zone member states and six non-euro zone countries. Four EU members - Hungary, the Czech Republic, Sweden and Denmark - decided not the sign it. MTI