Quotes of the Day

They have among the highest tax rates and most generous welfare systems in the developed world, but when it comes to international competitiveness, there's no beating Scandinavian countries. That's the conclusion of this year's annual global competitiveness survey by the World Economic Forum, which ranks countries according to economic dynamism, the quality of public institutions and technological prowess.

Finland once again topped the list (ahead of the U.S.), with Sweden in third place, Denmark at No. 4, Iceland No. 7 and Norway No. 9. "There is no evidence that [high tax rates] are undermining the level of competitiveness," said Augusto Lopez-Claros, the Forum's chief economist, who notes that Scandinavian countries put tax receipts efficiently back into the economy by investing in education and infrastructure.

How much can other European countries learn from the North? French Prime Minister Dominique de Villepin, for one, acknowledges Nordic influence on some of his social policies. Germany's Finance Minister, Hans Eichel, even invited along his Swedish counterpart, Per Nuder, during last month's election campaign. But Denmark's former Prime Minister Poul Nyrup Rasmussen warned that simply borrowing Nordic policies without adapting them to national conditions would result in "bad karaoke." Still, the survey suggests Europe's biggest economies need to do something radical: France, Germany, Spain and Britain all slipped in this year's rankings, and Italy came in at No. 47 — just ahead of Botswana.

• PETER GUMBEL