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Slovenia Business Week no. 09: Improvement on Economic Freedom Index Encouraging, Bajuk Says

Finance Minister Andrej Bajuk has said that Slovenia's leap from 45th to 38th of 157 countries on the 2006 Index of Economic Freedom is very encouraging for the country

Finance Minister Andrej Bajuk has said that Slovenia's leap from 45th to 38th of 157 countries on the 2006 Index of Economic Freedom is very encouraging for the country. His comments came after his meeting with Marc Miles, an editor of the survey on Tuesday, 21 February.

According to Bajuk, the improvement in Slovenia's economic freedom as measured by the Washington think-tank Heritage Foundation and business paper Wall Street Journal is an incentive for the Slovenian government to keep up efforts to set up a framework conducive to enterprise.

Creating such a framework would inspire entrepreneurship in individuals and subsequently promote innovation, competitiveness, all whilst creating new jobs, Bajuk said following his meeting with the director of the Heritage Foundation's Center for International Trade and Economics.

Bajuk claimed that establishing such a framework would require appropriate changes to tax legislation since the current progressive tax system does not promote entrepreneurship among people.

Meanwhile, Miles praised Slovenia for its successes, but stressed that the country needed to do more to attract foreign investors. One of the main tools available to Slovenia is establishing a more appealing tax system, he added.

Slovenia has one of the highest tax burdens of any country, which is not good as many Eastern European countries have opted for low tax rates and are therefore becoming more competitive, he added.

He endorsed plans to introduce flat tax in Slovenia, since he believes that this would be an excellent option for Slovenia. In Miles's view, flat tax would improve economic competitiveness and enable the state to collect more taxes than now.

Source: Slovene Press Agency STA

Author: STA