The anti-inflation package, the brake on the electricity price and many other measures that Austria has taken in the fight against high energy prices are “not targeted enough” according to the European Commission. The federal government quickly adopted energy policy measures, the EU authority announced on Tuesday. However, given budgetary and debt burdens, it would be important to better target such measures at the most vulnerable households and businesses to provide incentives to reduce energy demand.
An extension of existing support measures or the introduction of new support measures in response to high energy prices could lead to higher growth in net current government expenditure and an increase in government deficit and debt in 2023, the European Commission warned in its report on the European Semester.
Therefore, EU states should better adapt and withdraw the measures “when energy price pressures ease”. In addition to Austria, nine other countries, including Germany, have so far only “partially” implemented EU recommendations.
“Costs may be underestimated”
The EU commission also warned that the cost of the 2023 energy measures could “be” underestimated by EU states. According to calculations by the Brussels government, these could rise to 2.3 percent of the gross domestic product (GDP) in Austria if the measures are extended in 2023. In 2022, the energy measures would cost 1.5 percent of GDP.
Overall, the European Commission considers that the 2023 draft budget for Austria is partially in line with the financial policy guidance of the Council Recommendation of 12 July 2022. In addition, Austria has made some progress on the tax recommendations under the European Semester.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
