The citizens should get back the money that inflation took away. That promises Austria’s government. By 2026, the relief should add up to 28 billion euros. The socially disadvantaged and families in particular benefit.
Austria’s conservative-green federal government has decided on another multi-billion package of measures against rising prices. “We have resolved to give people back the money that inflation took away from them,” said Federal Chancellor Karl Nehammer. The package is already the third bundle of measures against the sharp rise in prices. In total, the relief should amount to 28 billion euros by 2026. The government hopes that additional income will be able to finance most of the expenditure.
The main beneficiaries are the socially disadvantaged and families. To this end, social benefits will be adjusted to the inflation rate at the beginning of next year. The one-time payments include raising the so-called climate bonus to 500 euros. The package also includes relief for companies, such as a reduction in non-wage labor costs or electricity price compensation. In addition, the abolition of the so-called cold progression is planned, through which taxpayers often slip into a higher tax bracket with a salary increase. “But we are not spreading this relief with the watering can,” said Nehammer. It is necessary to act as accurately as possible.
Two packages have already been put together since the beginning of the year. The measures are to be implemented in a three-stage process starting in the summer. In addition, CO2 pricing will be postponed to October after the start date was previously set for July.
According to calculations by Statistics Austria, the inflation rate in Austria climbed to 8.0 percent in May after 7.2 percent in April. That is the highest value since September 1975. The main drivers are the price increases for energy and fuel.
