The Index of Economic Freedom survey for 2007 has just been released today, it was conducted by the Wall Street Journal in association wit the The Heritage Foundation.
Interesting for us is their ranking of where Ireland lies economically, we were 2nd in Europe, after the United Kingdom and 7th overall in the world. It was cited that Ireland was weak in the labour freedom area.
As in many other European nations, generous labour laws mean that employment is not as flexible as it should be for maximum job creation and sectoral dynamics.
“Government spending as a proportion of GDP is also a disincentive. Even though tariffs are low, non-trade barriers reduce Ireland’s trade freedom score.”
Ireland scores highly when it comes to business freedom, investment freedom, financial freedom, monetary freedom, property rights, and freedom from corruption. A quick index of the results can be seen at www.heritage.org/index/topten.cfm.
So it’s good to see that Ireland is scoring so high. Let’s hope the government can work a little harder on the labour freedom, being a bit more flexible with how new jobs are created.