Responsible fiscal policy is crucial in times of heightened uncertainty
Amid exceptionally high geopolitical tensions and escalating trade wars, the global economy faces significant risks — including slower growth, rising inflation, and increased pressure on public finances. In this context, it is essential for Latvia to pursue a responsible fiscal policy, ensuring that fiscal instruments remain available in times of crisis. At the same time, budgetary savings must be identified to accommodate additional spending on national defence, even though a negative fiscal space is forecast — these are the key considerations highlighted by the Fiscal Discipline Council (the Council) in its interim Surveillance report on the Fiscal Structural Plan of Latvia 2025–2028: 2025 Progress Report.
An English summary and the full interim report in Latvian are available at the following link.