The ratings on the Republic of Austria reflect our view of the country's stable governance and predictable economic policies as well as its wealthy, diversified, and highly competitive economy. The government's plans to accelerate fiscal consolidation, as outlined in its proposed budget plan 2013 to 2016 and in the proposed amendment to the 2012 budget, should in our view reduce deficits and debt levels faster than envisaged under the current plan and 2012 budget. Nevertheless, we believe that Austria will only be able to achieve this goal if the environment in the European Economic and Monetary Union (EMU or eurozone) does not worsen. Austria remains a net external debtor, but sound current account surpluses over the past 10 years have
