To absorb the high energy costs of companies, the cabinet decided to introduce the energy cost subsidy 2 (EKZ 2) at the end of 2022. The maximum 150 million euros has not yet been paid out. It is based, among other things, on a guideline that is still being discussed.
Originally, companies could apply for financing for the first half of the year in September. It is no longer talked about now. As the “Kurier” reported on Saturday, the ÖVP and the Greens have not been able to agree on a corresponding directive for nine months. This should be available in Brussels no later than the end of September, so that the application period can run from mid-October to early November. The development bank should then process all applications before the end of the year.
Money already budgeted
If this is not successful, the energy cost subsidy will expire. This would have far-reaching consequences for many companies, as some had already budgeted the money and invested it accordingly. Depending on their size, companies could apply for between 3,000 euros and 150 million euros. The Ministry of Finance expected requests in the order of billions in the spring. However, significantly fewer companies have claimed the energy cost subsidy for 2022 than planned.
The Ministry of Finance refers to the Ministry of Economic Affairs, which in turn speaks about ongoing discussions. A corresponding proposal has been prepared. While Economic Affairs Minister Martin Kocher (ÖVP) and Finance Minister Magnus Brunner (ÖVP) are in favor, Environment Minister Leonore Gewessler (Greens) is against it. The argument goes that companies could be overfinanced, which could further fuel inflation.
The process for the energy cost subsidy is complex. As a rule, companies need a tax advisor, which will probably reduce the number of applications.
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.
