Finland is a country located in Northern Europe bordering the Baltic Sea, Gulf of Bothnia, and the Gulf of Finland. Neighboring countries include Sweden, Russia, and Norway, with Estonia lying to its south across the Gulf of Finland. Finland is a republic; the chief of state is the president, and the head of government is the prime minister. Finland has a largely free-market economy in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Finland is a member of the European Union (EU).