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Latvia's Fiscal Discipline Council Discusses Budget Deficit and Defense Spending Challenges

DEFENSE

Latvia can sustain a budget deficit above 3% temporarily due to increased defense spending, according to Jānis Priede, Chair of the Fiscal Discipline Council. The EU's exception clause allows this until 2028, but long-term stability relies on reassessing expenditures and increasing revenues. The Council expressed concerns over sustainability post-2028, emphasizing the need for a careful review of public services and potential expenditure cuts.

Latvia's Fiscal Discipline Council Discusses Budget Deficit and Defense Spending Challenges
Feb 14, 2026, 6:00 AM

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