Economic implications of Social Democrats' election victory
The current ruling Social Democratic party won the general elections last weekend and is most likely to form a coalition government with the centrist Christian Democrats and Freedom Union. According to economic analysts, the election results do not suggest any significant changes in the government's economic policies, nor are they expected to affect the exchange rate or the stock market. However, experts agree that there are certain important tasks ahead of the government, such as a fiscal and pension reform.
However, if we look at macroeconomic indicators, such as inflation, unemployment and GDP, we can see mostly positive results for some time now and the Social Democrats claim they have managed to lead the country from a recession of the late 1990's. Have the outgoing cabinet's policies really been so successful or were the Social Democrats just lucky to be in government during the rising stage of the business cycle? I put this question to economic analyst Petr Zahradnik of the Conseq Finance company.