Britain ahead of Germany in rich league

Britain is the most prosperous of the big economies in the European Union, a major report finds today, but is still behind countries like Switzerland and Norway which chose not to join the bloc.

Legatum Institute's 2014 Prosperity Index reveals Norway as the most prosperous country in the world, with Switzerland at number two in the list.

The Central African Republic finishes bottom of the rankings.

The UK is ranked at number 13, three places higher than last year's index, and one spot ahead of Germany.

France came 21st in the list, Spain 26th and Italy 37th, while Russia is the worst performing country in Europe, falling seven places to 68th.

The survey also found that the UK is a world-leader for entrepreneurship, coming 8th in the list, and that British people are some of the most charitable.

The study shows It found 74 per cent of Brits donate to charity, the 4th highest in the index, compared to just 42 per cent in Germany and 26 per cent in France.

George Osborne, the Chancellor, said that the study provided further international support for the Government's long-term economic plan.

He said: "Thanks to the difficult decisions we have taken to deliver economic security and control the public finances, we have moved three places up the global rankings.

"It's fantastic to see Britain leading the way for entrepreneurship, personal freedom, health and education."

James Barty, a special adviser to the Institute, added: "Politicians are often blinkered by what drives national success.

"Although a solid economy is a pre-requisite - and the Government should be proud of its achievements in putting the public finances on a sound footing - other factors are vital when it comes to prosperity."

The index measures a set of eight categories that reveal how nations perform both economically and in vital areas of education, health, personal freedom, safety and security and entrepreneurship.

It covers 142 countries in the world, accounting for 96 per cent of the world's population and 99 per cent of global GDP.

Prosperity list: top 20

1 Norway

2 Switzerland

3 New Zealand

4 Denmark

5 Canada

6 Sweden

7 Australia

8 Finland

9 Netherlands

10 United States

11 Iceland

12 Ireland

13 United Kingdom

14 Germany

15 Austria

16 Luxembourg

17 Belgium

18 Singapore

19 Japan

20 Hong Kong