The Austrian government is making energy and trading companies responsible for reducing the high inflation rate.
Chancellor Karl Nehammer announced on Wednesday that the existing state skimming off of excess profits in the energy sector would be tightened if companies in the sector did not lower their prices voluntarily. The food trade, which in Austria is dominated by Rewe, Aldi, Lidl and Spar, will also have to publish the purchase prices for staple foods in the future.
According to estimates by the EU statistical authority Eurostat, the price increase in April in Austria was 9.6 percent year-on-year. This put inflation well above the EU average of 7 percent.
Conservative Chancellor Nehammer said that corporations had “made billions in profits at the expense of people and the economy.” “You don’t have to put up with it like that,” added Vice Chancellor Werner Kogler (Greens). The necessary amendments to the law are to be passed in Parliament in June.
The opposition Social Democrats reacted with sharp criticism to the government plans. “Not a single price will be lowered by this press conference,” said SPÖ deputy faction leader Jörg Leichtfried. He blamed the coalition for the previous price increases. According to Leichtfried, the risk of poverty has increased significantly. At a special session of parliament on Friday, the SPÖ will not only submit a motion of no confidence in the government, but will also demand the withdrawal of the latest rent increases of around ten percent and the suspension of VAT on staple foods. (dpa)
