You are currently viewing “Not targeted” – EU criticizes Austria’s energy aid

Anti-inflation package, electricity price brake and many other measures that Austria has taken in the fight against high energy prices are “not targeted enough” for the EU Commission. The federal government quickly adopted energy policy measures, the EU authority announced on Tuesday. However, given budgetary and debt strains, it would be important to better target such measures at the most vulnerable households and businesses to provide incentives to reduce energy demand.

An extension of existing support measures or the introduction of new support measures in response to high energy prices could lead to higher growth in net current government spending and an increase in public deficit and debt in 2023, the EU Commission warned in the report on the European Semester. Therefore, EU states would have to adjust the measures better and withdraw them “when the pressure on energy prices eases”. In addition to Austria, nine other countries, including Germany, have so far only “partially” complied with the EU recommendations. “Costs may be underestimated” The EU Commission also warned that the costs of the energy measures for 2023 would “possibly” be underestimated by the EU states . According to calculations by the Brussels authorities, these could amount to up to 2.3 percent of gross domestic product (GDP) in Austria if the measures are extended in 2023. In 2022, the energy measures would cost 1.5 percent of GDP. Overall, the EU Commission is of the opinion that the draft budget for 2023 for Austria partially corresponds to the financial policy guidelines of the Council recommendation of July 12, 2022. In addition, Austria has made some progress with regard to the tax recommendations contained within the framework of the European Semester.

Source: krone

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

Leave a Reply