BRATISLAVA, December 6, (WEBNOVINY) — President of the Slovak Chamber of Commerce and Industry (SOPK) Peter Mihok opines that a common fiscal policy and responsibility is the only road to resolving the current European debt crisis. He says that the debt crisis has fully uncovered the weaknesses of the euro currency, especially with regard to the debt service of the eurozone member states as well as competitiveness of European economy. “The euro is the only currency in the world not supported by some joint institute, only the Stability and Growth Pact, which, however, has already been violated sixty times and is de facto no longer effective now,” said Mihok at a press conference on Tuesday.
He also emphasized the importance of assessing the responsibility and quality of European institutions, such as the European Parliament and the European Commission. “The European Commission is an awkward body that often comes up with proposals that Germany or France immediately brushed aside,” says Mihok. He believes that neither the European Parliament not the European Commission should be a storage for unusable politicians or a colossus incapable of making decisions. “If the changes only concern budgets but not EU institutions, it will all start to fray around the edges again,” said Mihok.
Mihok thinks that the EU is walking towards thin ice by presenting proposals of a fiscal union that have been voiced in Brussels lately. If these proposals only concern unification of corporate income tax base, such a step could be considered logical, Mihok thinks. He also thinks that Slovakia would be significantly affected if unification of tax rates in EU member states would be passed since it would lead to deceleration of economic growth and relocation of companies outside the EU. “We have to preserve internal competitiveness on the common market,” added Mihok.
SITA