Two countries threaten to quit Euro-pact

The pact to save the eurozone grew increasingly shaky yesterday after two more EU members, Hungary and the Czech Republic, threatened to pull out.

Although David Cameron was vilified by many in Europe for vetoing the Brussels proposals last week, the pact between the 26 European Union nations who agreed is rapidly unravelling.

Yesterday, Hungary and the Czech Republic, neither of whom use the euro, said the new fiscal rules were unacceptable if they were to take away their independent taxation rights. The Czech prime minister Petr Necas said: “We support the solutions which result in the stabilisation for the eurozone but we are convinced tax harmonisation would not mean anything good for us.”

Their concerns came just a day after Ireland suggested it may have to have a referendum on the reforms agreed at the summit.