Inflation: Brunner wants to test the French model for food

2023-05-06 12:05:14

There grocers and the government had agreed not to raise the prices of certain foods for a quarter. “I find that interesting and you might, for example, bring it up and discuss it at the food summit on Monday,” says Brunner in the Ö1 series “Im Journal zu Gast”.

However, Brunner still rejects a reduction in VAT on food, as brought into play once more on Friday by Green club boss Sigrid Maurer. In other European countries it has been seen that this measure is not or only partially passed on to end consumers. In addition, it is a “classic watering can method” from which people with higher incomes in particular would benefit particularly strongly. “The question is whether that’s clever.”

Brunner also rules out other additional price controls, such as rents. The government has already taken measures such as the electricity cost brake, the reduction in network costs and energy taxes. These would have already contributed to curbing inflation. In addition, there is a fall in prices in some areas, such as energy. One must therefore now question with all measures whether they are still necessary or might even have a price-driving effect and should be phased out.

“greed inflation”

Criticism of Brunner’s statements came from SPÖ finance spokesman Jan Krainer. After a year of record inflation, people can often no longer afford their daily groceries and rent, “but Finance Minister Brunner and the government are just watching and claiming to have done enough anyway.” He once once more called for inflation-dampening measures such as rent control and the involvement of the Federal Competition Authority “to curb the excesses of greed inflation and the crisis profits of stock corporations”. In view of its “total failure”, the government should clear the way for new elections.

In the fight once morest high inflation, Brunner and Economics Minister Martin Kocher (ÖVP) have announced meetings with experts and – if requested by them – the social partners for next week. Social Affairs Minister Johannes Rauch, Vice Chancellor Werner Kogler (Greens) and Agriculture Minister Norbert Totschnig (ÖVP) have meanwhile invited experts and trade representatives to a food summit.

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