Following the general election on May 24th 2007, the incumbent two-party coalition, comprising Fianna Fail and the Progressive Democrats, solicited the support of the Green Party and independent parliamentarians to ensure a majority in the Dail (parliament's lower house). The Economist Intelligence Unit expects the new arrangement to be slightly less stable and no more effective than its predecessor, but does not expect any significant change in the direction of policy, with the exception of an increased emphasis on environmental protection. An anticipated slowdown in GDP growth (from 4.8% in 2007 to 3.4% in 2008 and 3.3% in 2009) will require difficult tax and spending tradeoffs. The risks to our GDP forecast are large and growing. The budget surplus will have turned to deficit by the end of the outlook period. Inflation will ease slightly, but a differential with the euro area will cause an erosion of competitiveness.