The fight against global climate change reached the next level this February when the Kyoto Protocol came into effect. Under the international treaty, the European community agreed to cut its greenhouse gas (GHG) emissions by 8 percent below its 1990 levels starting in 2008. One of the elements of the EU's combat strategy in this environmental effort is emissions trading.
Structures involving Dutch or Luxembourg companies are commonly used for inbound investments in the Slovak Republic. An important reason for this is the extensive double tax treaty network of both countries eliminating or reducing withholding taxes on interest paid from Slovakia as well as the domestic participation exemption on dividends and capital gains enabling a tax free exit from investments in Slovak companies.
From May 2004, ten countries will accede to the European Union: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. The current European Union is already the biggest single market in the world. In its enlarged state, it will draw over 19% of world trade and will represent around 46 – 50% of world outward FDI and 20 - 24% of inward FDI.