The European Union and Hungary are preparing a new agreement on transit traffic. According to this agreement no taxes can be levied on the fuel carried across the borders in the tanks of trucks. As the fuel prices are very different in the various countries of Central and Eastern Europe, such a measure would greatly increase fuel tourism and fuel smuggling. The agreement also calls for “simplifying” border controls and for making it easier for trucks to pass through the country. If implemented, this would boost illegal activities. The agreement also substantially raises the number of free passes given to transit trucks. Now the agreement is before the Hungarian Parliament, and if approved, it will contribute also to the further destruction of the environment and violate the polluter-pays-principle. According to the Clean Air Action Group, one of Hungary’s leading environmental NGO’s, the new agreement contradicts several points of the accession agreement between the European Communities and Hungary, and also the agreement between Austria and Hungary on international freight transport. The Group calls for re-negotiation of the agreement as well as for punishment of those officials who prepared the document helping criminal activities and environmental pollution.