“Difficult times” – Chancellor Nehammer defends inflation adjustment

Chancellor Karl Nehammer (ÖVP) defended the planned compensation for energy costs and inflation in the Bundesrat on Thursday. The package worth 1.7 billion euros is money that is well invested in “actually difficult times”. The package will be made ready for plenary in the afternoon in the Social Committee of the National Council.

The energy cost compensation is intended to save households a total of 600 million euros. The cost-of-living allowance that has already been decided for particularly needy households is to be doubled to 300 euros, which amounts to another 100 million euros. Together with the already fixed suspension of the green electricity flat rate and the green electricity subsidy for this year – of an average of around 100 euros per household – which again roughly corresponds to 900 million euros, the federal government wants to ensure a relief volume of around 1.7 billion euros. The one-off payment of EUR 150 agreed in December and an additional payment of EUR 150 will compensate the unemployed, recipients of minimum security, compensatory allowance and study grants and mobility grant holders for increased living costs. Every one-person household or every multi-person household with an income up to one or two times the ASVG maximum contribution basis – that is approx. 5670 euros gross per earner per month – receives a one-off energy cost compensation of 150 euros for the main residence. Energy consultations are to be intensified and an additional funding pot made available for this purpose. In addition, a pilot project should enable low-income households to replace household appliances with particularly high energy consumption with appliances with lower energy consumption. The green electricity contribution for companies and households will be set to zero in 2022 – this should also save an average household around 150 euros. “Dramatic increase” In his speech, Nehammer spoke of a dramatic increase in gas prices against the background of the Russia-Ukraine conflict. Obviously there is a very well coordinated strategy between the Russian Federation and Gazprom. The Chancellor identified a “very bad situation” here, because there are also other components of inflation. The situation is also tense overall, he said with regard to the corona pandemic. But there are also positive perspectives. The number of employees is already back to the pre-crisis level, said the Chancellor.


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