Fiscal Discipline Council Highlights Significant Geopolitical Risks in State Financial Planning
The Fiscal Discipline Council has approved the Ministry of Finance's macroeconomic forecasts for the 2025-2028 Fiscal Structural Plan (FSP) progress report, recognizing them as conservative. However, the Council points out that these forecasts do not fully reflect recent geopolitical developments, particularly regarding U.S. trade policy. It also highlights the growing role of the military sector in the economy, both in terms of spending and revenue.
“Unfortunately, external risks and uncertainty are key factors in shaping future scenarios. To maintain financial stability and support economic growth in these challenging times, it is crucial to monitor economic developments continuously and adjust forecasts accordingly,” said Inna Šteinbuka, Chairwoman of the Fiscal Discipline Council.
The Council’s opinion on the macroeconomic forecasts is available [here].