Germany will inevitably become a role model: the Austrian government must respond with new support so that our economy remains competitive.
The powerful Johanna Mikl-Leitner (ÖVP) manages to present herself once again before the elections on January 29 as the generous mother of Lower Austria. A few days ago she demanded through the media of the federal government that Austria – also with regard to the competitiveness of the domestic economy – should provide a financial injection ‘German style’. Germany is investing EUR 200 billion for a longer-term protection shield or economic stabilization fund, Austria will pay another EUR 500 million in advance as an endowment. Of this, 50 million will be reserved for the prevention of homelessness. The problem is getting bigger. Numerous NGOs have long referred to this.
This was announced on Sunday by ÖVP Chancellor Karl Nehammer in the ORF “Press Hour”. An energy cost subsidy for companies should be established by Christmas. Due to the new German model, which includes a gas price brake, there is a need for improvement – there should be no competitive advantage for the German industry.
Wifo boss Gabriel Felbermayr sees it that way, even if he and his predecessor and current economics minister Martin Kocher (ÖVP) aren’t too happy about braking, as you can also see. In view of the German advance, Felbermayr warns against going national alone. The ministries of Kocher and also of Magnus Brunner (finance) and Leonore Gewessler (Greens/Climate) are developing an accompanying plan. There will also be a heat subsidy that will be coordinated with the federal states.
Important signal to the companies
The SPÖ had recently called for gas price brakes. Boss Pamela Rendi-Wagner even appealed to the ÖVP state governors to guide their mandates to the German course. The Chamber of Commerce was happy with the further help for companies.
“An important signal to companies before Christmas. It’s about quickly planning security for 2023, because energy costs are currently the biggest challenge for 83 percent of domestic companies,” said President Harald Mahrer. The challenge will have to be met for a longer period of time. curbing will also be one of the top priorities in the new year.
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.
