Economic Freedom and Sustainable Socio‑Economic Development in the EU: An Assessment Based on the Index of Economic Freedom in 2015–2025

Economic freedom is increasingly recognized as a key element of sustainable social and economic development, significantly affecting resilience and competitiveness, which translates into long-term stability of economies around the world. In this study, we analyze the extent to which state intervention, measured by the level of fiscal freedom, government spending, and monetary freedom, affects the sustainability of economic management in EU member states. Using the Index of Economic Freedom (IEF) and macroeconomic indicators such as GDP per capita and the Human Development Index (HDI), we analyze 27 EU countries [1,2, 32]. The study covers the period 2015–2025. The study uses correlation analysis and an econometric model estimated by the least squares method to assess how selected dimensions of economic freedom contribute to sustainable economic performance. The results confirm significant heterogeneity among EU countries and show that higher levels of economic freedom are associated with better socio-economic outcomes, including improved competitiveness, innovation capacity, and long-term growth potential. Countries that improved their IEF scores during the period under review tended to strengthen the foundations for sustainable development by improving regulatory efficiency and reducing excessive state intervention. The results of the study highlight the importance of predictable fiscal and monetary policies as factors conducive to sustainable economic management, thus providing evidence that economic freedom supports the conditions necessary for achieving resilient and inclusive economic growth in the European Union, which also translates into microeconomic aspects in the context of functioning of business entities.