The centre-left Smer-Social Democracy (Smer-SD) leads the government in coalition with the far-right Slovak National Party (SNS) and the populist People's Party-Movement for a Democratic Slovakia (LS-HZDS). The Economist Intelligence Unit believes that the coalition will remain in power throughout the forecast period. The government will continue to soften or reverse some of the economic reforms of the previous, more market-friendly administration. However, we think that the bulk of these reforms will be upheld, and that the aim of adopting the euro in 2009 is realistic, although there is a risk of delay. We forecast a slowdown in GDP growth to an annual average of just over 6% in 2008-09, from an estimated 8.5% in 2007, as domestic demand growth slows. The current-account deficit will decline further as a percentage of GDP in 2008-09, helped by strong automotive and consumer goods exports.