Austria's economy is characterized by high living standards, based on a high level of productivity and the innovative capacity of its corporate sector. Markets are flexible and react swiftly to economic shocks. As a result, unemployment is significantly lower than levels observed across most of Europe, and economic performance has been one of the least volatile among rated sovereigns. The resilience of Austria's economy is underpinned by its tradition of wage moderation and responsible social partnership. Since the turn of the current decade, Austria has embarked on a path of responsible macroeconomic policies and modernizing microeconomic reforms. Many recent reforms relating to liberalization and deregulation now appear irreversible. The government has concluded much of the sizable reform agenda--including simplification of
