The ÖVP-Green government is currently in the process of working out a brake on the price of electricity. This works in such a way that a certain quota is made available to each family at a certain price. The market price is paid for consumption in addition. This model has the advantage of including incentives to save, said Finance Minister Magnus Brunner (ÖVP).
He hopes the law can be passed in parliament in September so that it takes effect in the fall. Brunner rejects reducing VAT on certain products, such as bread and butter, because all experts advise against it.
Brunner on CO2 pricing: No ban on thinking
When asked about the price of CO2, which is expected to come along with the climate bonus in October, Brunner simply said it was part of the tax reform. In the ÖVP there are repeated requests for adjournment or even an indefinite suspension. For the Greens, however, this is absolutely impossible.
Brunner recognized this when describing the price of CO2 as part of tax reform. However, he added that there should be no ban on thinking and that there could be more relief through the climate bonus, curbing the price of electricity or offsetting the price of electricity for industry.
“We have a very good chancellor”
Brunner commented cautiously on union demands for full inflation compensation in the coming fall salary rounds. Wage negotiations are the responsibility of the social partners. The government can only send signals, and that’s what they did with tax-free prizes and the planned abolition of cold progressions.
As a summer debate, von Brunner dismissed speculation that he might replace Karl Nahammer as head and chancellor of the ÖVP. “We have a very good chancellor and I am very happy to be the finance minister at his side.”
He also expressed his belief that the government would hold until the end of the 2024 legislature. There are differing opinions on some topics, but this is normal. “We still have a lot to do.”