WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

The measures adopted by the government ahead of the elections in April and May are breathing life into the economy, with all the indicators now pointing in a positive direction. There is some doubt, though, about the extent to which this can sway the election outcome, and a transfer of power seems likely. If that happens, the biggest question will be how the new government positions itself on the constitutional changes required for EU accession talks to commence. In terms of economic policy, one should expect no great change, as both the main parties support neoliberal agendas. The second half of the year will continue to be exciting, as the current stimulus measures are due to expire, and the new government (whoever leads it) will have to tighten the country’s belt.