SOFIA (Bulgaria), February 16 (SeeNews) – Despite having a sound public finance management, resilient financial sector and a competitive flat tax rate, Bulgaria still needs deeper institutional reforms in areas like judicial effectiveness and government integrity, U.S.-based think-tank The Heritage Foundation said on Thursday.
However, Bulgaria ranked 47th in the 2017 Index of Economic Freedom, up from 60th place in 2016, with a score of 67.9 points from a maximum 100, The Heritage Foundation said on its website.
The think-tank's index covers 12 freedoms – from property rights to entrepreneurship – in 186 countries, through 12 quantitative and qualitative factors, grouped into four broad categories: Rule of law, Government size, Regulatory efficiency and Open markets.
Data from the second half of 2015 and the first half of 2016 was used to compile the 2017 edition of the index.
In terms of Rule of law in Bulgaria, the Washington, D.C.-based foundation outlines the need for further protection of property rights as well as the extremely low public trust in the judicial system, due to the lack of progress of the judiciary in terms of efficiency and accountability.
The government has struggled to combat corruption within the business community, in the judiciary, and in its own ranks, The Heritage Foundation adds.
Bulgaria ranks relatively higher in terms of the Government size category, particularly in terms of the Tax burden and Fiscal health criteria.
In terms of the Regulatory efficiency category, launching a business has become less time-consuming, and licensing requirements have been eased, though the pace of change has lagged behind that of some other countries, the think-tank notes.
The relatively low score in the Financial freedom category is offset by the solid scores Bulgaria receives in the areas of Investment and Trade freedom, data from the index show.