Finance Minister Magnus Brunner (ÖVP) today suggested examining the French model in the fight against high food prices. There grocers and the government had agreed not to raise the prices of certain foods for a quarter. “I find that interesting and you could, for example, bring it up and discuss it at the food summit on Monday,” says Brunner in the Ö1 series “Im Journal zu Gast”.
Brunner continues to reject a reduction in VAT on groceries, as brought up again yesterday by Green Party leader Sigrid Maurer. In other European countries it has been seen that this measure is not or only partially passed on to end consumers. In addition, it is a “classic watering can method” from which people with higher incomes in particular would benefit particularly strongly. “So the question is whether that’s clever.”
No price brake planned for rents
Brunner also rules out other additional price controls, such as rents. The government has already taken measures such as the electricity cost brake, the reduction in network costs and energy taxes. These would have already contributed to curbing inflation. In addition, there is a fall in prices in some areas, such as energy. One must therefore now question with all measures whether they are still necessary or could even have a price-driving effect and should be phased out.
In the fight against high inflation, Brunner and ÖVP Economics Minister Martin Kocher have announced meetings with experts and – if requested by them – the social partners for next week. Social Affairs Minister Johannes Rauch, Vice Chancellor Werner Kogler (both Greens) and Agriculture Minister Norbert Totschnig (ÖVP) have meanwhile invited experts and representatives of the trade to a food summit.
Opposition urges rapid steps
The opposition continues to urge the government to take swift steps to counter rising inflation. SPÖ, FPÖ and NEOS addressed demands and criticism to the turquoise-green government yesterday. One focus is on a possible reduction in VAT on staple foods.
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