Weeks of silence – why the anti-inflation package took so long

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After harsh criticism: Chancellor Nehammer (ÖVP) wants to present a package of measures today, Wednesday. He wants to start with energy costs, as they drive inflation across all fronts. According to one of Nehammer’s confidants, there is a specific reason why the anti-inflation package was delayed.

For weeks, Chancellor Karl Nehammer remained silent about the rise in prices. It earned him a tsunami of criticism and numerous angry reactions. The reason for the long silence is the chancellor’s style: Nehammer doesn’t want to make announcements like Sebastian Kurz that don’t hold up. “He wants to get things done,” says a source. And this mission apparently lasted. However, Nehammer risked that the mood in the country would almost change.

The government’s planlessness must change from Wednesday. It is heard from government circles that Nehammer and Vice Chancellor Werner Kogler (Greens) want to present a package of measures to the Council of Ministers after numerous talks in recent weeks. However, the focus should not be on price brakes for food.

According to the Federal Chancellery’s analysis, what may surprise many has a reason: high energy costs continue to drive inflation in all areas of life. Gastronomy, food production or even housing costs – energy prices affect everything. Here the government wants to use the leverage to finally lower inflation. According to relatives of the chancellor, it was a political decision.

“End customer still burns like a chandelier”
Because the economic researchers have given several reasons for the high inflation. “Energy prices for the energy companies are partly at pre-war levels in Ukraine, but the end customer still burns like a chandelier. That needs to change quickly,” said a minister. The government is trying to catapult itself off the defensive.

Clear warning of “southern conditions”
Because even Wifo boss Gabriel Felbermayr got angry about the obvious lack of plan. He warned via Twitter: “If you let things go, after joining the euro Austria will go as far as the southern countries of the eurozone.” Prices then galloped away from those of the “northern countries”. Felbermayr therefore advocates a transparency initiative and a reduction in VAT.

The SPÖ has scheduled a special session. “But the ÖVP and the Greens are blocking a meeting this week about rapid inflation,” said deputy club member Jörg Leichtfried. Now you know the reason.

Source: Krone

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