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Hungary may join the UK in opting out of EU deal

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Hungary may join the UK in opting out of EU deal


The UK may not be the only country to shun signing up to a new EU deal aimed at tackling the debt crisis.

Hungary and the Czech Republic, who are also outside the eurozone, are refusing to join the new agreement if it means giving up control of tax policies.

The two EU countries had initially agreed to be part of a deal proposed at the Brussels summit last week that would mean closer fiscal union between member states and tighter budget rules.

But now Hungarian Prime Minister Viktor Orban says there’ll have to be concessions.

“We do not intend to join any agreement that would include tax harmonisation steps. As far as we are concerned we do not want to sacrifice the results of an independent Hungarian tax policy that has made the Hungarian economy competitive. When we will negotiate with the euro zone countries we will make it very clear that this will be a very important, a key issue for the Hungarians at the talks.”

After Britain used its veto to prevent changes to the EU treaty itself, the other 26 members agreed to move forward on drafting an agreement meaning individual countries would have their tax and budget policies approved by the EU.

The nine countries who don’t use the euro have said the agreement will have to go before their respective parliaments, so there is a chance that others may drop out.

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