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.

According to reports, Austrian parties are set to renew its grand coalition after the election. They suffered their worst results during elections and lost their support with the far-right Freedom party and a new liberal party after the Second World War.

Austria is a European country with a healthy economy. It is now all set to conduct polls to re-elect its chancellor. The polls will take place on Sunday. Austria has close business ties with Germany and it has remained unaffected by the debt crisis that is known to have been troubling southern Europe.

Share of the vote is likely to be increased by Austria's far-right Freedom Party (FPO) in Sunday elections. Social Democrat Chancellor Werner Faymann's government association may well survive, but opinion poll trends proposed the FPO could surpass the People's Party, conservative junior partner.

Chancellor Werner Faymann sees banks footing bill for Hypo. In his recent statements, he has urged Austrian banks to come forward and help the nationalised bank Hypo Alpe Adria in winding down its liabilities, which currently amount to 7 billion Euros ($9 billion).

As per reports, the EU is moving closer to fighting the tax frauds. Recently, it has been seen that Europe is ending the banking secrecy to deal with the situation.