Energy prices – IV criticizes the “race” for national subsidies

In his criticism, the head of IV refers to a study by consultancy firm EY, which charts the subsidy race between states. Concerns about the plans of Germany, the main trading partner, dominate in the domestic economy. “Unless a viable European solution is found soon, the latest German plans for a gas and electricity price cap for businesses and households in the coming year will cause us great concern,” Knill confirmed. There is a risk that the immediate neighbors “produce much cheaper than the local companies”. Unlike domestic companies, foreign competition would also have “a clear ability to plan for the coming year”.

“As a result, we have no choice but to react as quickly as possible with further measures at national level in order to survive in the national and intra-European competition,” says Knill. In addition to the IV, the WKÖ and among the parties also the SPÖ and the FPÖ have recently demanded such an approach from the turquoise-green federal government. Meanwhile, Upper Austrian governor and deputy party leader Thomas Stelzer has also spoken out from the ÖVP, explaining in a media report that Austria would have to be helped nationally if the EU did not find a way soon.

Knill also says that “all national measures – whether direct subsidies or price caps – can only combat symptoms”. “What is actually needed is a European solution.” According to the industrialist, there is conflict in times when there is a need for cooperation. The wide range of national support includes subsidies, tariff caps, reductions in network tariffs, compensation of indirect emission costs, tax and excise-related measures, as well as loans and guarantees.