BUSINESS BRIEFS

EU frowns on Slovak investment incentives

The Finance Ministry is to present cabinet with the EU's objections to Slovakia's tax incentive policy to attract foreign direct investment, and the Union's demand that Slovakia modify its incentives before joining, possibly in 2004. The Union feels that the tax breaks Slovakia offers foreign investors - up to 10 years tax-free - constitutes 'unfair tax competition' that draws investment away from EU member states.

Government officials, when approving the tax breaks earlier this year, claimed they had allayed EU concerns over the tax breaks.

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