Many Emotions – Turkish Directional Dispute Over Price Caps

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The governor of Lower Austria, Johanna Mikl-Leitner (ÖVP) dared to make a controversial push for electricity – there is encouragement and criticism. There is now a threat of direction conflict within the ÖVP.

The SPÖ cheers because the powerful governor of Lower Austria is the first ÖVP politician to switch to the price caps course (the “Krone” reported Sunday). A directional dispute in turquoise is imminent.

Worry about cons
Treasury Secretary Magnus Brunner left to delay Mikl-Leitner. “In the current situation, experts predict that the economic disadvantages and dangers of a price cap will outweigh.” Former WIFO boss Christoph Badelt warns: A price cap is very expensive.

“The difference has to be paid by the public sector, it will be expensive and cannot work.” Former Chancellor Christian Kern also spoke. He testifies to the government’s passivity and believes that implementing a price cap in a meaningful way is not “rocket science”.

state support
The ÖVP state governors are open to Mikl-Leitner’s approach: “The right measures have to be taken at the right time. That could also be a price ceiling,” Styrian new boss Christopher Drexler told the “Krone”. Thomas Stelzer from Upper Austria also demands that experts “should at least think about a price cap, even if it can probably only be installed efficiently at the European level”.

Maintenance on Nord Stream 1 will start on Monday. Less gas will flow to Austria, says climate minister Leonore Gewessler (Greens). Nevertheless, according to E-Control, the storage target can be achieved if Russia again supplies natural gas in the agreed volume. Sounds like a journey into the unknown.

If Putin turns off the tap, bad times threaten
Agenda Austria has calculated three scenarios for 2023 if Putin turns off the gas tap. At best, two-thirds of Russian gas can be offset. Households must reduce gas consumption by a fifth. Still, economic power would decline by 2.6 percent. With all its consequences.

Middle scenario: Half of the Russian gas, people save more than 10 percent on gas. 72,000 additional unemployed and recession. Pessimistic assumption: Hardly any compensation. Households save too little. Conclusion: Nearly 100,000 more unemployed. counting industry. The only good news: the variant is considered the most unlikely.

Source: Krone

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