Prepared by The Heritage Foundation and disseminated by FAES and the Intelligent Regulation Forum Spain ranks 57th in the Economic Freedom Index

30/01/2019

    _ Spain is situated between Indonesia and Slovenia with 65,7 points out of 100

    _ Driven by Nobel laureate Milton Friedman, the Index analyses the degree of openness of the world's economies

    _ In the context of the European Union, Spain ranks 20th out of 28 countries, and its total score is below the regional average

    _ Hong Kong, Singapore, New Zealand, Switzerland, Australia, Ireland, United Kingdom, Canada, United Arab Emirates and Taiwan are in the top ten

Spain ranks 57th in the new world ranking of the Economic Freedom Index, produced annually by The Heritage Foundation and disseminated in our country by the FAES Foundation and the Intelligent Regulation Forum. In the new edition of the document, whose data correspond to 2018, Spain obtains a final score of 65.7 points out of 100, which represents a slight improvement of 0.6 points with respect to the publication of 2017. However, Spain ranks between Indonesia and Slovenia in the world ranking, and is also surpassed by countries such as Bahrain, Kosovo, Romania and Botswana. In the context of the European Union, Spain ranks 20th out of 28 countries, and its total score is below the regional average.

The Economic Freedom Index, promoted in its birth by the Nobel Prize in Economics Milton Friedman, analyses with objective data the degree of openness or interventionism of world economies and illustrates the benefits of living in freer societies. The document has studied the evolution of 180 countries according to twelve measures grouped into four sections: Rule of Law, size of government, regulatory efficiency and market opening.

The report assesses positively the improvement of the fiscal environment in Spain but warns of the “excessive indebtedness of the public sector,” which acts as a “brake on growth.” The study praises the 2012 labour reform, although it notes that no improvements have been made since then. In addition, it warns about the increase in the minimum wage agreed for 2019, while underlining the importance of improving the regulatory environment, which continues to hamper business activity.

On the other hand, the report regrets “the slowness of judicial instructions” in Spain, and notes that the rule of law is hampered by the lack of effectiveness and speed in solving corruption problems. In relation to the new Executive, it warns about the “discussed and costly reform program.”

Evaluation of Spain in the Economic Freedom Index

On this occasion, Hong Kong, Singapore, New Zealand, Switzerland, Australia, Ireland, the United Kingdom, Canada, the United Arab Emirates and Taiwan occupy the top ten positions, while Iceland, the United States, the Netherlands, Denmark, Estonia, Georgia, Luxembourg, Chile, Sweden and Finland complete the top twenty. (Click for more info)

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