Press Release: Statement after Commission financial assistance review mission to Latvia

The European Commission, jointly with the IMF, World Bank and Swedish representatives, concluded on 7 June 2010 discussions with the Latvian authorities on the implementation of the policy programme under the €7.5 billion multilateral assistance package. The Latvian authorities and the joint mission agreed that the 2010 budget deficit target of 8.5% of GDP is within reach, even allowing for accelerated spending financed by EU funds this year. There was also agreement that a further LVL 395 to 440 million net consolidation will be needed to reach the 2011 budget deficit target of no more than 6% of GDP (in ESA95 terms). Continuing with the consolidation effort is necessary to put Latvia's public finances on a sound footing, meet the Maastricht criteria for euro adoption and create the stability necessary for economic recovery.