The federal government on Tuesday presented a package of measures to combat inflation worth 28 billion euros. On the one hand, it concerns short-term measures that directly relieve the population and, on the other, long-term structural changes. First aid funds should be flowing as early as August. The top government defended the package in “ZiB 2” on Tuesday evening: “That’s why many in Europe will still envy us,” said Vice-Chancellor Werner Kogler (Greens).
“The volume is actually enormous. This is not an exaggeration or exaggeration, but factual,” said Chancellor Karl Nehammer (ÖVP). “That’s really big, that’s a huge volume.” No further tax reforms would be necessary as the cold progression would be abolished, Kogler added.
Direct aid costs five billion euros
Direct emergency aid for people costs five billion euros, and one billion euros for emergency measures for companies. You receive compensation for the electricity price, direct subsidies are provided for energy-intensive companies. Both measures are to come into effect this year. It has already been negotiated, but the details would not be presented until Wednesday after the cabinet meeting.
In time, the cold progression will be abolished, benefits will be valorised annually and indirect wage costs will be reduced. Including these measures, the package is worth 28 billion euros. It is already the third aid bundle, the first two energy aid packages had a total volume of four billion euros.
Big hit for Wifo boss, accuracy not optimal
The package of measures presented by the government is described by Wifo boss Gabriel Felbermayr as a “big blow”, especially the partial abolition of cold progression is a “big step”. At the same time, the accuracy of the measures could have been better, according to Felbermayr in the ORF “Mittagsjournal”. Fiscal Council boss Christoph Badelt was skeptical of the abolition of cold progression – here one has to wonder whether it would not have been better, for example, to withhold the extra income and keep it for further aid for the needy if the crisis persisted. Politicians narrow their scope here.
Source: Krone
I’m an experienced news author and editor based in New York City. I specialize in covering healthcare news stories for Today Times Live, helping to keep readers informed on the latest developments related to the industry. I have a deep understanding of medical topics, including emerging treatments and drugs, the changing laws that regulate healthcare providers, and other matters that affect public health.
