Energy price brake: state governors look to Germany

Concrete sums left Vienna’s mayor Michael Ludwig (SPÖ) and Vorarlberg’s governor Markus Wallner (ÖVP) open. However, it is important to act quickly. With the energy cost subsidy, the federal government has already taken an important step, according to the statement by the state governors.

But more is needed. One should not allow any competitive disadvantages for the economy. “Everyone rightly groans and moans,” said Ludwig. Concrete amounts were deliberately not mentioned, added his colleague from Vorarlberg. These would first have to be calculated and discussed.

Common demands of the countries

Lower Austria’s governor Johanna Mikl-Leitner (ÖVP) also renewed the joint demand of the states. Above all, there must be clarity and planning before Christmas. Many entrepreneurs want the German model, so it is important to examine it quickly. “But whichever model comes – it has to come quickly,” says Mikl-Leitner.

APA/Georg Hochmuth

The state governors discussed their most pressing issues on Friday – including, of course, the energy crisis

For Upper Austria’s Governor Thomas Stelzer (ÖVP), it is also about the survival of small businesses and the competitiveness of large industrial companies and the loss of a number of jobs. “If companies in Germany suddenly pay a fraction for energy next year, our companies will no longer be competitive.”

With the German gas price brake, households and small and medium-sized companies are to receive a guaranteed gross gas price of twelve cents per kilowatt hour for 80 percent of their previous consumption. For heat customers, the price should be 9.5 percent up to the 80 percent limit. The contract price should apply to the remaining 20 percent of consumption.

Meeting of the provincial governors in Vienna

At the meeting in Vienna City Hall, the provincial governors discussed, among other things, the upcoming negotiations on financial equalization.

ÖVP Economics Minister Martin Kocher pointed out the measures already taken in Austria in a broadcast on Monday. “This measure was taken at the right time for companies,” the minister was quoted as saying. However, Germany has opted for a model for an energy price brake for companies. “Against this background, further measures are also needed here so that Austrian companies remain competitive,” says Kocher, who wants to analyze the German model.

Fiscal equalization negotiation team nominated

The conference of state governors also nominated their negotiating team for the financial equalization on Friday. The federal states are represented in the talks with the federal government by Ludwig, Burgenland’s governor Hans Peter Doskozil (SPÖ), Wallner and Stelzer. According to Ludwig, the negotiations will be approached “particularly offensively”. The start is planned before Christmas.

Graphic shows the distribution key in financial equalization

Graphics: APA/ORF.at; Quelle: WHAT

“For us, a simple extension of the financial equalization is out of the question,” Wallner made clear. The federal government had already been informed in advance that a larger share of the tax revenue would be desired in the future. Ludwig argued that it was not only the eco-social tax reform and the abolition of cold progression that had a severe impact on the state budgets. There is also a “strong dynamic” in terms of costs for childcare and nursing.

The range of demands made by the states on the federal government is also varied in other areas. In the hospital sector, for example, the lump sum for social security is valued annually, but does not take into account the cost increases. The federal states were also “very busy” with the financing of technical colleges and universities, which should be adjusted in line with inflation.

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