Austrian government presents package with measures to cushion inflation

The Austrian government presented a package of measures aimed at cushioning the impact of high inflation that includes 500-euro ($523) payments for all residents

Austria
Austria. Photo: Wikipedia
AP Berlin
2 min read Last Updated : Jun 14 2022 | 2:34 PM IST

The Austrian government on Tuesday presented a package of measures aimed at cushioning the impact of high inflation that includes 500-euro ($523) payments for all residents and a three-month delay to a new levy on carbon dioxide emissions.

The government, a coalition of Chancellor Karl Nehammer's conservatives and the environmentalist Greens, put the price of immediate measures at about 5 billion euros and said the package will cost a total of 28 billion euros through 2026.

It says it aims to bring relief first to people on low incomes; the unemployed and people on low pensions are slated to get a payment of 300 euros each.

That's in addition to 500 euros each for everyone half of that for children, and half of it described as a climate bonus.

The government decided to delay from July until October the introduction of a CO2 pricing plan that envisions an initial levy of 30 euros per ton of carbon dioxide, rising to 55 euros in 2025.

Other measures include electricity price compensation for business and a grant for energy-intensive companies and, in the longer term, a move to address wage increases being eaten up when they move recipients into a higher tax bracket.

Austria's annual inflation rate hit 8% in May, in line with similar rates in other European countries fueled by the Russian invasion of Ukraine.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :InflationAustriaeconomy

First Published: Jun 14 2022 | 2:33 PM IST

Next Story