BRATISLAVA, November 29, (WEBNOVINY) — Finance Minster Ivan Miklos thinks that Slovakia should endeavor to be involved in closer cooperation between key eurozone countries. The question is what such cooperation would involve. “It is an essential issue for us whether Slovakia would count among such countries. I believe it is in Slovakia’s interest to belong among such countries although it may have much to do with what form and what fiscal union would be concerned,” said the minister at a press briefing on Tuesday.
No matter how the situation develops, the eurozone cannot function as it has to date, the minister believes. He substantiates his opinion referring to the fact that not only over-indebted members of the eurozone but also for example Germany has a problem to borrow to finance its debt. Eurozone ending up with a lower number of members cannot be ruled out either. “I am not sure whether this thesis also concerns the number of member countries, possibly yes, it cannot be ruled out but it certainly concerns mechanism and rules,” Miklos said. Slovakia would therefore appreciate stricter, tougher, and clearly enforced rules that would force countries toward budgetary responsibility, while a violation of the rules could ultimately lead to restriction of budget sovereignty.
“The fact is that the situation is unsustainable without some substantial changes,” said Miklos. The changes should not lead to some “United Stated of Europe” with a strong European government with common taxes and redistribution from the rich to the poor, Miklos emphasized. “I am convinced that such eurozone could not be politically sustainable,” he maintains. Slovakia also opposes to harmonization of direct taxes. “Nobody would benefit from that. It would not just harm Slovakia but also the countries demanding it,” thinks Miklos.
SITA