Inflation in Austria: fight for the sovereignty of interpretation

Status: 08/17/2022 11:51 a.m

In Austria, inflation is 9.2 percent. Chancellor Nehammer’s ÖVP counters this with vouchers and compensation payments, but is at the bottom of the survey. The SPÖ, on the other hand, can score with references to its neighbor Germany.

By Jean-Marie Magro, ARD Studio Vienna

There is currently hardly a more important topic in Austrian politics than inflation. Pamela Rendi-Wagner knows that, which is why she invited to a press conference on the subject in Vienna on Tuesday. The Austrian government cannot continue to stand by and watch “this price explosion”, she said: “You cannot endlessly hand out vouchers and remain passive in the face of price increases. That cannot be the goal of an effective anti-inflation policy.”

Rendi-Wagner is the leader of the Social Democrats in Austria. For weeks, the SPÖ has been in the lead with around 30 percent of the vote in the polls. The ruling Conservatives are embroiled in various affairs. The ÖVP is only 22 percent and even threatens to fall behind the right-wing national FPÖ. Rendi-Wagner has also drawn level with incumbent Karl Nehammer on the chancellor question.

He is trying to get the issue of inflation under control with various measures: “There is an early deduction for pensioners, there is support for the socially disadvantaged, there is support for students, there is support for families the decision that the family bonus will be increased from 1,500 to 2,000 euros per year per child,” he said at the end of July. The bonus is a tax deduction for families with children. In autumn, further measures are to take effect, such as an electricity price brake, but not so much is known about them yet.

“Half the continent is burning”

Instead of distributing vouchers, real measures are needed to curb inflation, says SPÖ leader Rendi-Wagner. She takes a look at Germany: while the Austrian National Bank estimates the inflation rate at 9.2 percent in Austria, it is two percentage points lower in the Federal Republic. The tank discount played a major role in this, says Rendi-Wagner, citing a study by the Wiesbaden statistics authority.

Chancellor Nehammer, on the other hand, is supported by his deputy Werner Kogler: The Green leader remains on the side of the coalition partner ÖVP. Kogler is not convinced by the comments of the Social Democrats: “I prefer everyone who reports serious concerns but is still working on a solution than those who act as if it could be done with the stroke of a pen. That’s dubious, dishonest and ultimately irresponsible.” Measures must also have long-term problems in mind, said Kogler on ORF.

At this time, when we have such a climate crisis and half the continent is on fire, that’s the way it is, we can’t send the wrong signals here and encourage people to waste energy.

Will Tyrol become social democratic?

Kogler has been asked again and again for days whether he would support another chancellor from the ÖVP, because according to the polls Nehammer is ailing.

The incumbent is the third chancellor in the black-green coalition and has only been in office since December. The government has to deliver, says Kogler.

At the latest after the state elections in Tyrol on September 25, the question could become really acute. Because then the pitch-black Tyrol could turn red. A hot summer is looming in political Vienna.

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