The planned price brakes for electricity and gas in Germany are also causing discussions and calling for a similar approach in this country. Otherwise there is a risk of competitive disadvantages, argues, for example, Harald Mahrer, president of the Austrian Chamber of Commerce – “quick action by the federal government” is now necessary. So he was rare in the SPÖ and FPÖ, only one.
“Austria cannot afford significantly higher energy prices than other neighboring countries, as these are at the expense of its own competitiveness,” the head of the Economic Chamber and the ÖVP Economic Association warned in a written statement. “Therefore, domestic companies need further strong support with maximum use of the EU funding framework.” This must be implemented “quickly and unbureaucratically”. “Our companies need planning certainty and fairness in international competition.”
SPÖ fears for competitiveness
The SPÖ also reiterated similar demands or warnings to the ÖVP Green federal government. “The competitiveness of our companies is at stake, which puts the entire economy at risk,” said vice club boss Jörg Leichtfried in a broadcast. “It’s about lowering prices, curbing inflation. So a brake on the gas price is reasonable because it also has a beneficial effect on electricity and food prices.”
Now also Kickl for gas price ceilings
Just last week, the Social Democrats in parliament tried to impose a gas price brake. There was no majority and the FPÖ also voted against the SPÖ proposal at the time. In the meantime, however, FPÖ leader Herbert Kickl has also spoken out in favor of a gas price cap: a half-hearted electricity price brake for households is nowhere near enough, he said in a broadcast.
Action is urgent
In his letter, Mahrer continued to insist on the “absolute” need for action on the part of nation states, even as the EU’s Council of Energy Ministers passed resolutions on measures in the gas sector on Thursday. Because even if something is decided, it takes a while before the measures can actually be implemented.
“Therefore, the Austrian federal government must take swift measures to absorb the exorbitantly increased energy prices until European solutions are implemented and come into force.”
The industry is also asking for a German model
In the run-up to the meeting of European energy ministers, there was also a call from the Federation of Austrian Industries (IV) – which also called for Austrian measures on the German model if the plans there are approved by the EU. “With all the current discussions and considerations, speed is the top priority. Because every day that energy costs in Europe rise, our companies lose competitiveness,” President Georg Knill warned that action must be taken quickly.
“The urgently needed decoupling of electricity and gas prices at EU level is not on the agenda. Not only will this increasingly lead to a competitive disadvantage vis-à-vis other regions of the world, but there is also an increasing risk of a national scramble for aid within the EU,” continues Knill.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
