european-semester-documents-latvia

European Spring Package 2026

The European Semester is an annual exercise that coordinates the EU's economic and social policies. Based on the analysis conducted every year by the Commission, each Member State receives a set of Country Specific Recommendations (CSRs), where policy action is needed. In Latvia, these include:

The current geopolitical situation and the proximity to Russia risk deepening economic and social challenges while also creating new security risks for countries on the Eastern Border of the EU, like Latvia.
Latvia has increased defence spending (3.2% of GDP in 2025), which is needed in the current global context. Funding needs remain for healthcare and social protection. Tackling the shadow economy, broadening the tax base, and prioritising spending would help addressing those needs.
Latvia has seen improvement in the business environment through several measures adopted to simplify regulation and reduce administrative burden (including streamlining procedures in construction and business registration). At the same time, businesses seek better access to finance, especially SMEs outside Riga. Stimulating competition in the financial sector and promoting public lending and guarantee schemes would facilitate investment.
Innovation is a key driver for growth. Targeted grants for startups, stronger university- businesses partnerships and regional innovation hubs would help turn ideas into business solutions.
There has been progress in electric vehicles. Further promoting clean vehicle uptake and electrifying rail (including Rail Baltica) would support further cutting emissions and better connect Latvia to EU trade routes.
Sustainable growth remains key. Better targeted benefits, affordable and social housing, and upskilling programmes would help reduce the remaining gaps in social protection. Stronger prevention policies, including public health campaigns, could help improve health outcomes.

European Semester Spring Package 2026 - Two-page summary

Country report

Published as part of the Spring Package, country reports provide a detailed analysis of each Member State’s economic and social developments and challenges and assess the extent these are addressed by national policies. Additionally, the reports review the implementation of country-specific recommendations from previous Semester cycles.

2026 Country Report - Latvia

Country-specific recommendations

Published as part of the Spring Package, the Country-specific recommendations (CSRs) provide tailored guidance to each Member State, suggesting socio-economic and fiscal policy actions to be taken over the next year. The Commission develops the CSRs based on the country reports and its review of the national policy plans submitted by Member States. The draft recommendations are then further discussed by the Council which reaches consensus on a final version over the summer.

The recommendations focus on policy areas that face persistent challenges or are only partially addressed by national policy plans. CSR can cover a wide range of topics, including public finances, pension system reforms, education, innovation challenges, job creation or addressing unemployment.

2026 European Semester:
Country Specific Recommendations / Commission Recommendations

Draft budgetary plan

By mid-October, eurozone Member States are required to submit their draft budgets for the following year to the Commission and the Eurogroup. The Commission assesses their compliance with the CSRs, the agreed net expenditure path and the requirements of the Stability and Growth Pact.

Draft budgets that do not align with past CSRs are addressed in the Opinions on the Draft budgetary Plans, published as part of the Autumn Package. Member States adopt their new national budgets at the end of the year.

Draft budgetary plans 2026

National reform programme (until 2023)

After receiving guidance from the Autumn Package, Member States submit their national policy plans for assessment ahead of the Spring Package. The national reform programme outlines the structural economic reforms that the Member State intends to implement, with a focus on future policies to strengthen employment and growth and prevent or correct macroeconomic imbalances. The programme should also indicate how the planned policies comply with the country-specific recommendations of previous European Semester cycles.

As of 2024, the national reform programmes will be replaced by the medium-term fiscal structural plans.

General publications (26 April 2023):
Latvia - National Reform Programme 2023