Inflation – Rauch announces package for autumn

The government is likely to agree on a new package once morest inflation in the next few days. However, it will not come until autumn, as Social Affairs Minister Johannes Rauch (Greens) put it in the “ZiB2” on Tuesday evening. He cited the necessary (parliamentary) lead times as the reason. According to him, it will contain both short-term and structural measures.

Rauch did not get lost in details, but at least indicated the direction in which things will go. On the one hand, the Minister of Social Affairs confirmed the postponement of CO2 pricing to October, which he considers to be justifiable, on the other hand, he wants to ensure annual valorization of social benefits and agree on aid “that arrives immediately”.

The minister also wants to focus on price monitoring. Rauch dislikes the free-rider effects he locates in the construction industry, for example. The minister did not allow himself to be pinned down when it came to “cold progression”. Here they talk regarding what makes sense, such as whether it might be abolished permanently or only for a certain period of time. The head of department also wants to discuss wealth-related taxes.

Consultations also with the social partners

Regarding the procedure, Rauch said that there would be further consultations with the social partners tomorrow and the day following. One can assume that agreement will be reached very quickly.

Climate Minister Leonore Gewessler (Greens) was reluctant to speak at a press conference on Tuesday. However, she expects that “a result can be achieved in the next few days”.

Negotiations in the government are going on intensively, but they cannot anticipate the results, Gewessler said. On the ÖVP side it was said that the package might not be expected in the current week. The FPÖ criticized this as a “slap in the face to those people who have to fight to survive every day in view of the record prices for food, energy and fuel. These people need help – and not a federal government that is in deep sleep mode when it comes to inflation “, so FPÖ leader Herbert Kickl in a broadcast.

“Apparent contradiction between climate protection and economy”

In view of the very strong inflation, the People’s Party and the Greens are discussing not starting CO2 pricing until October 2022, three months later than originally planned and at the same time as the climate bonus. This might be set uniformly at 250 euros for 2022 instead of staggering it regionally between 100 and 200 euros. The Greens also want gas heating in new buildings to be phased out as early as 2023. Other measures – from valorization to one-off payments to grants – are being negotiated, as Green club boss Sigrid Maurer recently explained.

The Climate Change Center Austria (CCCA) stated in a press release that measures to cushion the high energy prices and inflationary pressure from a human, but also from a social and economic point of view, are urgently needed. However, the suspension of this climate policy measure in response to high energy prices and inflation does not contribute to this.

“The suspension of climate policy measures reinforces a false narrative of an alleged contradiction between climate protection and the economy, which has long been scientifically refuted, but is nevertheless often attempted by those who want to delay the energy transition and the system change to a sustainable society for particular interests,” it said by CCCA in the mailing signed by Daniel Huppmann, Helga Kromp-Kolb, Harald Rieder and Gerhard Wotawa, among others. (apa)

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