German Chancellor, Gerhard Schroeder has reiterated an earlier warning to the ten European countries set to join the EU on May 1.
According to reports in the German media, Mr Schroeder argued that the new member states cannot "on the one hand destroy their state income with low taxes and on the other hand build up their infrastructure using aid from the EU," adding that:
"Germany as the biggest net payer of the EU has to finance unfair tax competition against itself."
The Chancellor's message to the accession states was supported by leader of the opposition CSU party, Edmund Stoiber, who expressed unity with the government on this issue by announcing that:
"What we do not accept is furthering the relocation of jobs mainly financed by German tax measures."
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