Estonia is a country located in Eastern Europe that includes bays, straits, inlets, and an estimated 1,500 islands. It is bordered by Russia, Latvia, the Gulf of Finland, and the Baltic Sea. The mainland is flat and heavily forested. The government system is a parliamentary republic; the chief of state is the president, and the head of government is the prime minister. Estonia has a modern market-based economy in which the prices of goods and services are determined in a free price system. Estonia is a member of the European Union (EU).