Combating inflation: government measures at a glance

Combating inflation: government measures at a glance

According to a report by exxpress.at, prices for daily life rose by an average of 7.8 percent last year. This leads to severe reactions from the political opposition, which accuses the government of mismanagement and calls for targeted measures against inflation. In response, Chancellor Karl Nehammer (ÖVP) presented measures that are intended to help curb inflation.

One such measure is the abolition of cold progression, which the government hopes will provide lasting relief for citizens. According to Nehammer, this should relieve the population of a total of 20 billion euros by 2026. Furthermore, an electricity price brake was introduced, which is intended to cushion household costs and will remain in force until the end of the year. Energy cost subsidies 1 and 2 are intended to ensure the long-term competitiveness of the location by cushioning the increased energy costs.

In addition, the family bonus was increased and the implementation of the eco-social tax reform brings a total relief of around 22 billion euros, which relieves the burden on the population and ecologizes the tax system.

These measures to curb inflation have the potential to reduce the financial burden on citizens and ensure the competitiveness of the location. It remains to be seen how these measures will affect the market and the financial sector and whether they can actually curb inflation.