Once the center of power for the large Austro-Hungarian Empire, Austria was reduced to a small republic after its defeat in World War I. Germany has historically been the main trading partner of Austria, making it vulnerable to rapid changes in the German economy. But since Austria became a member state of the European Union it has gained closer ties to other European Union economies, reducing its economic dependence on Germany. In addition, membership in the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to EU aspiring economies. The outgoing government has successfully pursued a comprehensive economic reform program, aimed at streamlining government and creating a more competitive business environment, further strengthening Austria's attractiveness as an investment location. This has led to the accelerating growth in GDP in recent years, reaching a growth of 3.3% in 2006. However, the economy may slow in 2008 because of the strong euro, high oil prices, and problems in international financial markets.