The article presents an analytical overview of models of social policies in the context of their application to socio-economic system of Latvia. In the article, the history and peculiarities of the creation of integrated social policy of member states of the European Union, European social model as well as a system of Key Indicators characterizing the social policy of Latvia in the context of the European Integration are analyzed. The problems faced by Latvia in its socio-economic development and ways to overcome them are identified. The necessity of forming a new model of socio-economic policy in Latvia by the transition to a model of sustainable development is justified. Proposals to improve the social policy of Latvia by the transition to the model of sustainable development of the country are made.