Austria's long-running alliance that is uniting the conservative People's Party and the Social Democrats will be effective for another five-year term. The government pledged a continuance of its `successful course'.

On Thursday, the parties agreed to one more term ruling as a grand coalition. The decision was taken after securing a narrow combined majority in elections on September 29.

Chancellor Werner Faymann of the center-left Social Democrats (SPÖ) said in Vienna, "We know that the result that we have achieved together will mean that . Austria will stay on its successful course".

As per Michael Spindelegger, head of the People's Party and current vice chancellor, the coalition will focus on certain important issues. These issues include budgetary consolidation, increasing the actual age of retirement, increasing effectiveness in government and implementing a growth plan.

The growth plan would include restructuring of Austria's holding agency, the ÖIAG.

Austria fares well in most European economic indicators. Also, it has the lowest unemployment rate in the EU. Government predictions have started pointing towards an economic slowdown and a shortfall of 24-billion-euro ($33-billion) in 2014-2018 budgets.

This is an important matter to the conservative People's Party (ÖVP) at the time of negotiations of alliance and budget.

A grand coalition has ruled Austria for a total of 37 years, starting from the year 1945, then in 1949-1966, 1986-2000 and from 2007 till the present day.