Anti-inflation package – This is how the Austrians should be relieved now

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When it comes to inflation, the turquoise-green federal government is bowing to pressure from the opposition, states and unions and is presenting a “money-back package” on Tuesday. In addition to immediate relief, this includes longer-term relief – and the elimination of cold progression.

The pressure in the pot was eventually too great. From Caritas to the opposition to the Chamber of Commerce and Wifo, lately there has been an increasing call to act quickly. Packages at worst inflation in decades for the summer. Recently, ÖGB boss Wolfgang Katzian and the no less powerful governor of Lower Austria Johanna Mikl-Leitner (ÖVP) gave the final impulses via “Krone”.

The calls were heard: A government statement on the aid package will be released at 8 a.m.

Cold progression would fall too
According to the negotiators, it should cost a bombastic 20 billion. The abolition of the cold progression, which is so often demanded and which should go backwards from 2026 to 2021, is particularly costly. Finance Minister Brunner has been evaluating for weeks. With the current inflation rate of 8 percent and little prospect of improvement, this is the order of the day.

Money back package coming
The “money-back package” aims to ease large parts of the burden and dampen inflation quickly and unbureaucratically, especially for low-income earners. There must also be an indexation of the benefits (there were certainly differences within the coalition), a climate bonus of 250 euros for everyone and the postponement of the CO₂ price to October.

Retirees are also taken into account
Vulnerable groups should receive emergency aid now. Child benefit, reduction of tax brackets. So there can be more left. Retirees are also taken into account. On Monday, SPÖ club deputy Leichtfried demanded a 6 percent increase.

Retired representatives Korosec (ÖVP) and Kostelka (SPÖ) had also made an urgent appeal to the government via “Krone”. Demands from 2.4 million people are hard to refuse.

Source: Krone

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