Ireland fifth most free economy in the world

IRELAND is the most economically free country in Europe thanks to its low levels of corruption and competitive tax rates, according to a new report.

Ireland’s economic freedom score is 81.3, making it the fifth freest economy in the world, according to the Heritage Foundation/Wall Street Journal 2010 Index of Economic Freedom.

Its score fell by 0.9 point from last year, reflecting lower marks in monetary freedom, government spending and financial freedom.

“Though Ireland’s dynamic economy has benefited substantially from its openness and flexibility in recent years, the financial sector was affected by the global financial turmoil, and the economy has suffered sharp economic adjustments since late 2008,” the index said.

Ireland’s overall levels of economic freedom remain high, sustained thanks to strong protection of property rights, a low level of corruption, efficient business regulations and competitive tax rates, it said.

“These strengths provide solid foundations on which to build recovery and curb long-term unemployment,” the report noted.

Starting a business takes anaverage of 13 days in Ireland, compared with the world average of 35, while getting a business licence requires less than the world average of 18 procedures and 218 days.

Hong Kong was found to be the world’s most free economy.