Although the government decided today on the next package of measures, prices continue to rise. Economic expert Franz Schellhorn warns: “We are now the most expensive country in Western Europe!”
According to the head of the think tank Agenda Austria, the two price-determining factors are services and district heating. Nevertheless, the government has the right “not to intervene in prices”. He explains: “It would be like fixing the fever thermometer at 37 degrees. Then you can’t see the fever anymore, but it hasn’t gone away.”
Muchitsch (SPÖ) tough: “I am ashamed as an Austrian”
SPÖ MP and trade unionist Josef Muchitsch sees it differently: “Politicians must have the courage to intervene in the market.” You have to lower the prices and then “put the lid on”. He also calls for a tax on the rich: “As an Austrian, I am ashamed! In European comparison, we are in the wealth tax Nackapatzerl!
Wöginger (ÖVP): “Purchasing power is maintained, cafes are full!”
The ÖVP club president August Wöginger defends the “no” to price interventions in a conversation with Katia Wagner. The government wants to help the poor in a targeted way, a VAT reduction is a distribution with the “watering can” and therefore entails “many disadvantages”. In addition, purchasing power in Austria remained “unharmed”. That’s why the black club president asks: “In a social welfare state you shouldn’t talk about poverty. The cafes, shops and taverns are full!” The new package of measures therefore helps families who are at risk of falling into poverty.
Threatening many “toast bread weeks” soon?
The chief economist of the Momentum Institute, Oliver Picek, also sees the lower middle class in danger. They were “now afraid that they will fall into poverty”. He therefore argues for price controls, caps and tax cuts, because otherwise there would soon be ‘toast bread weeks’ for broader layers of society, in which there is no money left for a hot evening meal at the end of the month. Skimming off excess profits and an inheritance and wealth tax should bring in money.
A trend of social democracy
Despite the price increases, the trend towards part-time work in Austria and booking travel is unbroken, says economist Schellhorn as a counterargument. “We must stop considering the entire population as poor,” he demands. And further: “This is a trend and mainly stems from social democracy.”
Watch the full conversation above! “Katia Wagner – the talk” can be seen every Wednesday at 8:15 PM on krone.tv! Join the discussion and tune in!
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.
