Memo: Third Post-Programme Surveillance mission to Latvia by the Commission services

Following the successful conclusion on 20 January 2012 of the three-year financial support programme by the EU, the third Post-Programme Surveillance (PPS) mission to Latvia was carried out by the Commission services from 13 to 15 May, together with the ECB. PPS missions are scheduled to take place twice a year until 75% of the EU loan provided to Latvia will be repaid (expected in 2015).

Since the last PPS visit in November 2012, economic and budgetary performance, including budget control, has been commendable. However, pressures to spend are likely to grow in the coming months. A new fiscal framework has been in place since earlier this year but has not been tested yet; the 2014 budget will show its actual clout. The Commission has on several occasions called for a substantial reduction of taxation for low income earners by shifting taxation to areas such as excise duties, property and/or use of natural resources, and by continuing actions to tackle envelope salaries, contraband and other types of tax avoidance.

• Primary Source

ESO: Background information: Latvia formally applies for eurozone membership http://www.europeansources.info/record/latvia-formally-applies-for-eurozone-membership/

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