Research paper: Public debt in Latvia – deficit and ageing 1 December 2016
As a result of the most recent financial crisis, government debt levels increased dramatically in Latvia and the European Union more generally. The Fiscal Discipline Law stipulates that government debt should not exceed 60% of GDP. This is one of the four fiscal rules that have to be observed when planning and executing the state budget.
In December 2015 the Council commenced working on the question of government debt. This year's report on public debt argues that, while the current level of public debt is still below the threshold specified in the Fiscal Discipline Law and the Maastricht Treaty, the persistence of deficit spending and a contracting labour force may create sustainability issues in the long term.