Germany is falling behind in economic freedom in comparison with other countries around the globe, according to a new report issued by the Friedrich Naumann Foundation. In its "Economic Freedom of the World" report, the liberal foundation placed 95 countries ahead of Germany, which came in second-to-last place. The biggest problem area identified in the report was Germany's extremely over-regulated labor market. The "hesitant steps toward reform taken by the government" haven't yet led to any increased economic freedom, the report said. The Economic Freedom Index was developed by over 100 leading scholars, and is produced by over 60 institutes around the world. The report examines the connection between economic freedom, investment, and economic growth by measuring the institutions essential for ensuring the rule of law, property rights, and freedom to trade, among other indicators.