EUROPEAN UNION VS ECONOMIC FREEDOM UNDER THE GLOBAL CRISIS IMPACT.

The paper deals with the idea of analyzing the impact of the economic freedom on national economic development. In order to realize this, the analysis is focused on three steps. For the beginning, we determined the place of the EU28 in the global economic freedom approach using the Index of economic freedom and the comparative analysis. The second step of the analysis consists of a TwoStep cluster analysis, supported by SPSS19 software, which is realized in order to support the idea that the economic freedom, connected to the economic development, created three clusters from the Member States. The clustering criterion is BIC (Schwarz's Bayesian Criterion). Finally, the analysis is focused on a forecast of the index of economic freedom till the end of 2020, in order to observe if the disparities across the world economy. The dependent variables in this forecast are the economic freedom rates and the independent variable is time. The forecast method is ARIMA. Whole analysis process and all conclusions of the paper are supported by the latest official statistic data, pertinent tables and diagrams. The main conclusion of the paper is that the economic freedom supports the economic development. Its global trend was positive in 2013-2014. There is not global economic actor in world top 10 according index of the economic freedom. Only two Member States are ranked on the global top 10. Moreover, there are great disparities across the EU28 related to the economic freedom. As a result, the Member States can be grouped into three different clusters. Romania will have a positive trend of the economic freedom score until 2020, better than the global trend of this index. The disparities between EU Member States will not be fixed on short and medium term and the solutions seem to be found at national level. [ABSTRACT FROM AUTHOR]