After the turquoise-green federal government has failed to implement a rent brake due to opposition from the ÖVP, although rental costs have risen several times in recent times, Finance Minister Magnus Brunner (ÖVP) wants to look at the underlying indices as a whole. “You can of course discuss changes in the index value, but you also have to estimate the consequences,” the politician said in the ORF press hour on Sunday.
Brunner also referred to the housing subsidy, which was “better and more accurate” than rent control, which the Greens could not enforce. The Minister of Finance reminded us that 700 million euros is available from the federal states to absorb the cost increases. He once again regretted that the Greens did not offer a discount for the (first) purchase of a home.
With regard to the indices, the politician stressed that changes would be a way to stretch increases. “But you also have to think long term, not overnight.”
When inflation falls to ECB’s target “is an open question”
Brunner confirmed well-known assessments and justifications for inflation in Austria, which has been significantly higher than in the Eurozone or Germany for many months. But whether the ECB’s target of an inflation rate of 2 to 3 percent “can be achieved so quickly remains to be seen”. In this country, it is important that purchasing power has increased overall despite immense inflation, Brunner said again.
Regarding the looming hot wage round in the fall, Brunner said they would of course not interfere in the negotiations. ,,We cannot interfere in the wage negotiations.” But wage increases are also partly the cause of the price increases. “We can set preconditions, such as the abolition of cold progression.” This means workers are left with more wage increases than before the abolition, Brunner reminded them. And: “If the social partners so wish, a tax exemption for premiums can also be introduced this year.”
Business failures at pre-Corona level
As for the situation with corporate insolvencies – an increase is predicted this year – Brunner pointed out that the situation had returned to pre-Corona levels. A possible bankruptcy is regrettable, but for the affected employees there are currently good prospects for a quick new job.
Regarding the tax deferral for the bankrupt furniture retailer Kika/Leiner, Brunner said that the company had followed all the rules like other local companies. State aid rules, in turn, were adopted unanimously in parliament. Given the corona pandemic, we had to act quickly.
How much of the 150 million in deferred Kika/Leiner taxes will be refunded is “a good question”. The Financial Prosecutor investigates the processes and represents the interests of the Republic during the insolvency proceedings. Kika/Leiner went bankrupt a few days after the sale by Rene Benko.
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.
