The German traffic light government has introduced a gas price brake. This increases the pressure on the Austrian coalition. But economists are skeptical.
It is a learned reflex on the domestic political scene: as soon as a popular measure is introduced in Germany, pressure mounts for Austria to follow suit.
German government takes over 200 billion euros
The German traffic light coalition is now releasing an astronomical 200 billion euros for a gas and electricity price brake. The model is similar to the Austrian electricity price brake. 70 to 80 percent of the consumption of an average household should be subsidized for two years.
SPÖ presented gas price ceiling model
SPÖ leader Pamela Rendi-Wagner and ex-SPÖ leader Christian Kern recently presented a gas price ceiling model that would relieve private households and businesses. The total cost would amount to nine billion euros.
Greens reject gas price brake
How will the Austrian government react now? Green Vice Chancellor Werner Kogler has repeatedly seen a critical brake on gas prices. Energy Minister Leonore Gewessler (Greens) rejects models that increase gas consumption. A gas price brake does not provide any savings and also costs enormous amounts.
Economists are critical of the German decision
The economists are also critical of the German traffic light government’s decision. The “father of the price brake”, Wifo boss Gabriel Felbermayr, speaks of a “double boom”. Because the measure, which “costs a whopping five percent of GDP, will relieve households in Germany and immediately save gas traders from bankruptcy by the state”. His predecessor Christoph Badelt is against the watering can principle. “It would be better to relieve the lower income as a third. If the price continues to rise, the government will have to think about a subsidy for heat sources.”
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.
