European Commission and REFOR 3 June 2026, Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Latvia

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This Recommendation for a Council Recommendation outlines the European Commission's assessment and proposed policy guidance for Latvia's economic, social, and budgetary policies for 2026-2027 under the European Semester framework. Key provisions include maintaining fiscal sustainability through net expenditure limits while utilizing the national escape clause for defense spending, and addressing structural challenges in healthcare, social protection, and the labor market. The document further mandates the continued implementation of the Recovery and Resilience Facility and cohesion policy programs to foster innovation, energy transition, and regional development.AI