Monday there is a summit on high food prices. Experts advise on ways out of poverty and current measures. One demand: Get rid of VAT.
In Austria, 1.56 million people are affected by poverty or exclusion (barely able to participate in working life) – 17.5 percent of the population. Inflation is a concern. Food prices are hard to digest: there is a top on Monday. Government meets trade, agriculture, social partners, economists. Finance Minister Magnus Brunner (ÖVP) took a step on Saturday.
“In the short term, a permanent inflation correction of emergency aid and unemployment benefits would be the best. In the long term, you have to tackle the causes instead of just fighting the symptoms,” says Wifo boss Gabriel Felbermayr. By this, he mainly means more education in financial affairs – enforced by the state. The economics professor is currently considering suspending VAT on basic foodstuffs and rent caps worthy of discussion.In general, more generous, permanent transfers are needed to those really affected.And you need to care much more for the ever-growing group of migrants.
ÖGB boss Katzian: “ÖVP alone at home”
That is also how Gerald Loacker (NEOS) sees it. “Only those who are really affected can be helped.” Another fundamental problem: “Many of those who come to us are not literate. That also makes poverty more dynamic.”
Loacker can also gain something from the VAT suspension. “People pay so much tax anyway.” Secretary Brunner is against. This indignant ÖGB boss Wolfgang Katzian: “ÖVP home alone. Meanwhile, everyone joins us.” Katzian wants to clarify his demands on Monday – which roughly correspond to SPÖ leader Pamela Rendi-Wagner’s three-point plan: Commission against the cost of living – Katzian also wants a price database for transparency: The “Black box pricing” is not reasonable given the record inflation ; rental ceiling; get rid of the property tax on groceries.
Caritas chairman Michael Landau explains the necessity. According to one study, 76 percent of the 201,000 very poor people would be without healthy meals and 73 percent would not be able to heat their homes. Instead of one-off payments, there is a need for “a reform of the social system to combat poverty in the long term”.
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.
