Ireland has overtaken Luxembourg and Estonia to become the state with the "most free" economy in Europe, according to an index produced by a conservative US foundation.
The index found that Ireland's was the third most free economy in the world, after Hong Kong and Singapore, moving up from fifth position last year.
The index is published annually by the Heritage Foundation and The Wall Street Journal. The foundation seeks to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong (US) national defence, according to its website.
The editors of the index say countries with greater economic freedom have higher rates of long-term growth and are more prosperous than those with less economic freedom. The index rates countries between one and five on 10 broad measures including trade policy, "fiscal burden of government", monetary policy, capital flows, wages and prices, and property rights.
On Ireland the foundation said: "The country has one of the world's most pro-business environments, especially for foreign businesses and investments, and Prime Minister Bertie Ahern, whose Fianna Fáil party governs in coalition with the Progressive Democrats, has maintained this impressive inheritance."
Of the 157 countries assessed for the 2006 survey, 99 improved their overall score with just 51 slipping. Most notable among those was Italy, which recorded the second largest fall and is ranked just 42nd.
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