1/16/2009

Bavaria leads study into economic freedom in the German federal states

MUNICH Bavaria has once again landed in top place in the current issue of the Study ‘Economic Freedom in the German Federal States’ (Wirtschaftliche Freiheit in den deutschen Bundesländern) of the Friedrich Naumann Foundation. The Bavarian Minister of Economic Affairs, Martin Zeil, was delighted at the result: "Last year, Bavaria also came out top in the index of economic freedom. The fact that we could hold this position proves how strong Bavaria is as a business location." According to the study, there is a positive correlation between economic freedom and a higher per-capita income, stronger economic growth rates and lower unemployment.

Bavaria scored best among the German federal states, followed by Baden-Wuerttemberg in second place. Due to the comparatively high level of government intervention in the Eastern German states, these states on average did not perform as well as the former German states. "In terms of economic freedom Bavaria is a role model for all the German federal states. This makes us feel proud and we intend to do just as well again next year", commented Zeil. He underlined: "Besides fair performance-based competition and moderate social alignment, economic freedom is a fundamental prerequisite for prosperity. And by vigorously reinforcing these basic principles, we can offer the best preconditions for German and foreign companies. Bavaria will continue to rank in the top league in the future as well".

The study on economic freedom has been commissioned by the Friedrich Naumann Foundation since 1994. Factors of importance to economic freedom come into play when people can go about their business, use their labor force and goods and produce and exchange merchandise without constraint. Protection of ownership rights is also a vital factor. The Friedrich Naumann Foundation was set up in Bonn in 1958. One of its major activities is political education.

Source: Invest in Bavaria

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