RIGA — The European Commission commended Latvia’s government Wednesday on its efforts to tighten its budget deficit and urged the Baltic country to keep working toward achieving a management deficit level.

“I commend the Latvian coalition government, the Saeima and the society at large for the courage and determination in delivering the efforts necessary to put the country on a more stable footing,” European Economic and Monetary Affairs Commissioner Joaquín Almunia said.

“Although not without difficulties, the government and the Parliament have delivered on their commitments, in line with the requirement set by the EU Finance Ministers and the criteria for the Balance of Payments assistance,” Almunia said.

The praise was part of a larger assessment of budget policy in the EU, where many of the 27 members have run large deficits in order to combat the effects of the economic crisis. Criteria dictate that deficits not exceed 3 percent of gross domestic product, but some 20 countries — including Latvia and Lithuania — have passed this limit.

Almunia, who was forced to make an unplanned visit to Riga last fall to convince ministers and lawmakers of the need to fulfill international obligations, said Latvia’s efforts to consolidate the budget are “impressive by any standard.” He said that the deficit should be 8.5 percent this year.

His praise was welcomed on Brivibas Avenue, where the government is split on nearly every issue and tremendously fragile.

Prime Minister Valdis Dombrovskis said the European Commission’s assessment shows that Latvia is on the right path and that this will be a good signal to international capital markets, where the Baltic state’s reputation has been badly bruised.

But Almunia reminded Latvia’s leaders that much work lie ahead.

“The effort needs to continue, notably for what concerns further fiscal adjustment and ensuring a stronger and more sustainable economic activity in the future…There is obviously some way to go to bring the deficit below 3 percent of GDP to ensure a stable and sustainable environment in the future and with a view to adopt the euro,” said the commissioner.

Latvia hopes to introduce the euro in 2014, but to do that it must have a deficit below 3 percent and low inflation. Bank of Latvia chief Ilmars Rimsevics said Wednesday that some 441 million lats (€630 million) needed to be cut from next year’s budget to achieve a deficit of 6 percent of GDP.  He urged lawmakers to begin work on the budget before October elections.