Debt of Rendi-Wagner – “You can’t give out endless coupons”

While the turquoise-green coalition has taken some measures to boost purchasing power, Rendi-Wagner admitted on Tuesday. The government’s voucher campaigns are “okay”, but: “You can’t endlessly hand out vouchers and watch inflation rise!” she emphasized. According to Rendi-Wagner, who referred to her recently presented five-point program, additional measures are needed that have a targeted price dampening effect, especially for food and fuel.

In addition to an electricity price ceiling – which is currently being discussed – she also argued for a gas price ceiling, which should be introduced immediately, not just in the autumn. In addition, benchmark and category rents are frozen. The SPÖ wants VAT (currently ten percent) to be suspended for both basic food and fuel. There should also be an active price control.

Active intervention “possible and necessary”
Targeted intervention in the price system is “not only possible, but also necessary”, confirmed Pamela Rendi-Wagner. According to Statistics Austria, inflation was estimated at 9.2 percent in July – the highest since 1975. If countermeasures are not taken, there is a risk that inflation will continue to rise. The SPÖ leader referred to WIFO inflation expert Josef Baumgartner, who expects inflation above ten percent in the coming months if there is no trend reversal. Rendi-Wagner pointed to countries such as Germany and France where inflation has fallen due to targeted policies. In Germany, the tank discounts would have lowered the gas price by 30 percent.

The former SPÖ politician and former head of the National Bank, Ewald Nowotny, also criticized the government’s measures. The support measures for financially weak households are “correct in principle”, but implemented in a “confusing variety and significant inefficiency”.

“Massive positive effect” from the VAT reduction
On the other hand, Nowotny, like Rendi-Wagner, called for a temporary suspension of VAT on basic food and fuel. He denied objections that such a measure was socially inappropriate: “There is certainly a huge positive effect to be expected” because people with low incomes spend a larger part of this on food than people with high incomes. The VAT suspension will also be passed on by the corporations, as a strong price war is raging in the food trade.

Although the government has already postponed the planned carbon tax until October, Rendi-Wagner and Nowotny called for it to be postponed again. Reason: Even without the tax, the fuel became more expensive, the steering effect that was foreseen as a result has now been amply exceeded by inflation. A price increase for fuel is “cynical” in this situation, explains the SPÖ boss. EThe point is not to take additional inflationary measures, adds Nowotny. The carbon tax – like the food sales tax – should be temporarily suspended until inflation has declined to about 4 to 5 percent.

‘Cabinet takes up SPÖ proposals with delay’
SPÖ chairman Rendi-Wagner also argued for taxing the surplus profits of the energy companies as a result of the increased prices. In doing so, she sharply criticized Vice Chancellor and Greens leader Werner Kogler, who had explained in the ORF “summer talk” that the government was working on a similar model. “First Vice Chancellor Kogler says that would not be effective and then the government will adopt our proposals with great delay,” the SPÖ party leader said in Kogler’s direction. According to Rendi-Wagner’s proposal, half of the revenues from the taxation of excess profits should be used for measures against inflation and half for the expansion of renewable energy.

Criticism of the SPÖ boss came straight from the ÖVP: Secretary-General Laura Sachslehner said in a broadcast that Rendi-Wagner’s demands were “insanely expensive measures, but they don’t help much”. The FPÖ’s social spokeswoman, Dagmar Belakowitsch, in turn accused the Social Democrats of “copying” liberal ideas with the price caps for gas, electricity and fuel.