The commission says this may reflect harmful tax competition.

ECONOMIST: European Union

The region may not be far away from a potentially harmful bout of tax competition, which would no doubt attract the ire of more established EU members such as Germany and France.

ECONOMIST: Will more of eastern Europe adopt flat-rate tax regimes?

OECD's officials are adamant that they are not against tax competition as such, merely against the harmful variety.

ECONOMIST: Tax

It also called for a clampdown on what it called "harmful tax competition", where member states compete with each other to provide the most benign tax environment.

BBC: Tax avoidance targeted by European Union