After criticism of the anti-inflation package, the turquoise-green coalition wants to make things better for the poorest. By the end of the year, 250,000 children at risk of poverty will receive monthly support. The National Council meets on Fridays.
Working and performing would prevent poverty – with this statement in the current debate about inflation and poverty, Chancellor Karl Nehammer caused a stir. Experts point out that many people live in poverty despite their jobs.
These are part-time people (mostly women) and people in low-paid jobs (see chart below).
Special measures are therefore required for low incomes, such as child benefit on top of the WW or a higher social assistance benefit. The government should actually make improvements here.
Aid for 250,000 children
Monthly special support is planned for around 250,000 children at risk of poverty by the end of the year. The exact amount is still under negotiation. The opposition will probably not be satisfied with that.
The SPÖ convened a special session of the National Council on Friday. She argues for the reversal of rent increases, a rent freeze until the end of 2025, the suspension of VAT on daily groceries and strict price controls with the possibility of fines (for example, reimbursement of energy support).
The cabinet does not agree with this, but uses the plenary meeting to submit a bill on new profit skimming for energy companies. This can be decided in May and will take effect from July.
“Customers shouldn’t be stupid”
To curb inflation, energy companies must skim profits and quickly pass on falling purchase prices to end customers. “The customers should not be stupid and the companies should not make a fortune anymore,” ÖVP club boss August Wöginger explains the approach of the “Krone”.
The energy industry is already grumbling
In the energy sector there is resistance to the government’s plans. The companies question the legality of the planned profit skimming and deny that they would not pass on the lower wholesale prices to consumers.
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.
