Responsible fiscal policy is crucial in times of heightened uncertainty Amid exceptionally high geopolitical tensions and escalating trade wars, the global economy faces significant risks — including slower growth, rising inflation, and increased pressure on public finances. In this context, it is essential for Latvia to pursue a responsible fiscal policy, ensuring that fiscal instruments remain available in times of crisis. At the same time, budgetary savings must be identified to accommodate additional spending on national defence, even though a negative fiscal space is forecast — these are the key considerations highlighted by the Fiscal Discipline Council (the Council) in its interim Surveillance report on the Fiscal Structural Plan of…