Country Report: Austria.

The article provides an overview of the political and economic conditions in Austria for the 2006-2007 period. The Austrian People's Party and the small Alliance for the Future of Austria will serve out the remainder of the parliamentary term ahead of the general election in November. The result of the election is difficult to predict, with a range of coalition configurations possible. The policies of both the present and the next government will emphasize efforts to lower the unemployment rate, increase labor force participation among older workers and lower spending in public administration and healthcare. The public finances are forecasted to record a deficit of 1.8 percent of gross domestic product in 2006.