From small grocers to large industrial companies – the current crisis triggered by Russia’s war of aggression against Ukraine is leading to high energy prices and unpredictable inflation everywhere. As announced last week, the federal government is supporting energy-intensive companies with 1.3 billion euros. You can register for this energy cost subsidy from the end of October – more on this in How the energy cost subsidy works (news.ORF.at, 28.9.2022).
The subsidy will be paid retrospectively to companies that spent at least three percent of their production value or turnover on energy between February and September 2022. Economic Councilor Jochen Danninger (ÖVP) sees this period critically. According to him, the protective shield must already be extended until the end of 2023: “For many small and medium-sized companies that are currently suffering from the high energy prices, there is a risk that they will have to stop operating because it is no longer economically viable.” in this phase the companies would need “a clear perspective”.
Help for digital and sustainable projects
The state, on the other hand, is initially relying on the existing subsidies, such as “digi4wirtschaft” for digital projects or the “eco-bonus” for sustainable initiatives, for example if a company moves its new location to a disused factory building. There is also financial aid in tourism to raise the quality of the companies or to promote the founding of companies.
In the past, this economic development has “showed extremely positive effects,” emphasized Governor Johanna Mikl-Leitner (ÖVP) on Thursday at a press conference at which a balance was drawn over 75 years of economic development in Lower Austria: “Our family businesses have developed excellently, many of them new companies have settled here and the attractiveness of Lower Austria as a business location has increased massively.”
One billion euros in funding in three decades
In the past three decades alone, there have been more than 150 different funding campaigns. Around 60,000 funding applications were approved and one billion euros in funding was paid out, triggering investments of 15 billion euros, according to the press conference. The companies are therefore “more digital, more innovative and more flexible than ever before”.
The Brantner family business from Laa an der Thaya (Mistelbach district) has benefited from this. Managing Director Hans Brandtner explains that his grandparents set up the company for agricultural transport technology 75 years ago. Since then, the company has “deliberately decided in favor of Lower Austria”, the managing director stated: “Because here we can trust that we will find support when it is necessary”.
Two years ago, for example, investments were made in a more ecological system, which “could save a lot of solvents”. The cost: ten million euros. “That’s a very, very large amount for us,” admits Brandtner. The subsidy is by no means intended to “relieve the risk for companies, but every euro helps there.” Above all, medium-sized companies, which usually plan their investments over a longer period of time, would benefit massively from such subsidies.
In addition to taking stock of the existing subsidies, Mikl-Leitner also promised on Thursday to closely monitor developments in the economy to see whether “more support is needed.” That doesn’t always have to be money, but can also relate to liabilities. Mikl-Leitner promises “every form of support so that the companies get through the crisis well” and invest again with “a lot of courage and optimism”.