Latvia, with a population of 2.3 million, has around 370,000 people without citizenship - mainly former Soviet citizens who have been refused Latvian passports since 1991.
The Congress of the Council of Europe said in its recommendation that "the vast majority of non-citizens are long-term residents, often born in the country and largely integrated within the society, but nevertheless excluded from electing representatives in their municipalities of residence."
Congress Vice-President Jean-Claude Frecon said at the session: "We believe that giving them the right to vote in local elections will make them feel more involved in a society to which they already belong, and will turn them towards naturalization. Not the other way round."
Non-citizens are not considered stateless persons under Latvian law. However, a UN special rapporteur on racial discrimination earlier said Latvian non-citizens are de facto stateless persons, and recommended that Latvia review its naturalization requirements.
Russia has repeatedly called on the EU to address infringements of human rights of 'non-citizens' in the Baltic States.
In June this year Russian President Dmitry Medvedev signed a decree simplifying visa requirements for former Soviet citizens residing in Latvia and Estonia. The move provoked criticism from both Baltic countries, which said that it could harm Russia-EU partnership negotiations.