TAX HARMONIZATION ASPECTS OF SEE REGIONAL INTEGRATION PROCESSES

Georgi Ranchev

Abstract


Six of the countries in Southeast Europe - Albania, Bosnia and Herzegovina, Macedonia, Montenegro, Serbia and UNMIK can still be considered as small and relatively isolated from an economic point of view. It seems that CEFTA 2006 as a separate effort of regional integration in Southeast Europe is not likely to have a substantial positive effect on the economic development of the region.  Recent strategic theoretical and empirical studies show that the short-term economic implications of regional integration between developing countries are ambiguous. It seems that the main argument in favor of deeper regional integration between the six Southeast Europe countries will be the increased security through cooperation. The harmonization and coordination of the tax and customs legislation is of specific importance for the successful operation of CEFTA 2006. The maintenance of clear rules, in line with the European requirements regarding corporate and indirect taxation and control is of substantial importance for securing long-term fiscal stability in the region. An agenda for sustainable growth of the SEE-6 countries is much needed to stimulate further reforms orientied at the succesful accession of the region in the European Union.

Keywords


SEE, CEFTA 2006, regional integration, tax harmonization

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References


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