The ratings on the Republic of Austria are supported by Standard&Poor's Ratings Services' view of Austria's stable governance and predictable economic policies, as well as its wealthy, diversified, and highly competitive economy. The government has reiterated its strict adherence to the consolidation path laid out for 2012-2016, placing priority on reducing the fiscal deficit and debt. We think the government could achieve a structurally balanced budget by 2017, provided economic conditions in the EU don't deteriorate substantially from our current base-case forecast (see "Entrenched In Recession, Europe Seeks A Balance Between Deleveraging And Growth," published March 26, 2013, on RatingsDirect). Federal elections coming up in autumn 2013 should not, in our opinion, pose a risk to fiscal consolidation,
