Finland was the top nanny state due to its ban on e-cigarettes and "happy hours" in bars, as well as heavy restrictions on alcohol advertising. It also taxes chocolate, soft drinks, confectionery, ice cream and alcohol. Incremental tax increases on sales of tobacco products were introduced in early 2014.
The U.K. came third in the index. It was found to have the highest tax rates on wine and cigarettes, in the EU and the second-highest beer duty. Cigarettes are taxed at 16.5 percent of the retail price, plus an extra £3.93 ($5.66) for packets of 20.
In addition, a tax on sugary drinks is set to be introduced in two years' time.
"Britain is the third-worst country in the EU for lifestyle freedoms. Only Finland and Sweden are worse places to be a drinker and nowhere is worse to be a smoker. The U.K.'s only saving grace is its liberal approach to e-cigarettes," Christopher Snowdon, IEA head of lifestyle economics, said in the news release.
Central European and Eastern European countries, with the exception of Hungary, tended to have fewer regulations and taxes on smoking, vaping, eating and drinking.