The Federation of Austrian Industries (IV) is calling for new billions in support for energy-intensive companies. “The situation is beyond dramatic,” IV President Georg Knill said Friday. “Many companies are up to their necks in water.” The reason is a tenfold increase in gas prices and a sixfold increase in electricity prices within a year. The federal government has announced further aid, but has not yet offered it.
“There is a risk of production cuts and unemployment in Austria unless countermeasures are taken quickly and consistently,” Knill warned in a broadcast. According to the industry, not only energy costs threaten location, but also availability.
“Quick and unbureaucratic help is needed that provides quick relief and maintains liquidity in the company. In addition, structural changes need to be made in response to the European price problem – keyword ‘merit order’,” said the IV boss.
Industry proposes five tools
The industry therefore proposes five instruments. Aid instruments already prepared should be expanded and expanded, such as increasing the energy cost subsidy to 2.5 billion euros and extending it until next year. Electricity price compensation must be implemented permanently. In order to strengthen the liquidity of the companies, extra support is needed with the purchase and security of energy. For tax purposes, a three-year loss allowance must be introduced.
A new preparation for short-time working in the administration is also necessary. “Should companies cut production due to unaffordable energy costs or an energy shortage, there is a risk of a wave of short-time working, comparable to the Corona years 2020 and 2021,” says Knill.
“European electricity market must be reformed”
The European electricity market needs to be reformed. This was also announced recently by the President of the European Commission, Ursula von der Leyen. According to the IV, the Merit Order should be further developed.
The ÖVP-Wirtschaftsbund Niederösterreich also saw in a broadcast on Friday that the government led by the ÖVP had a “duty” to quickly implement the energy cost compensation. Measures were also needed at European level.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
