2023-05-08 15:46:05
Vienna. While the Austrian government continues its fight against the inflation monster, high increases in food prices frighten Austrians! On Saturday, a video of Deputy Prime Minister Werner Kogler and Social Affairs Minister Johannes Rauch appeared on social media. In the video, the Green government duo complain about the high prices in the food trade. Kogler’s “It is no longer acceptable for us to pay 10 to 20 percent more for the same products than in Germany” critique stands out.
Shopping is becoming more and more of a burden for more and more people. On Monday we will clarify why food prices are so high in Austria and what approaches there are to reducing costs at the checkout with experts, social partners and representatives of supermarket chains. pic.twitter.com/eebg2nNcx0
— Werner Kogler (@WKogler) May 6, 2023
In fact, a recent study by the Austrian National Bank shows that Germans pay, on average, 13% less at the supermarket than Austrians. Social Affairs Minister Rauch also shared a video shot at the supermarket. “This business can no longer go like this” he expresses his reaction. Rauch shot with his German counterpart. in the video, they bought similar products from the supermarket and compared the prices, and as a result, his colleague in Germany paid 16 euros and Rauch paid exactly 23 euros. This means a 40% increase.
Emphasis on “price transparency” for companies at the summit
Deputy Prime Minister Werner Kogler, Social Affairs Minister Johannes Rauch (both Greens) and Agriculture Minister Norbert Totschnig (ÖVP) met with experts and representatives of the retail sector at a food summit on Monday to ease the ongoing price pressure on Austrians. While Deputy Prime Minister Kogler emphasized the need to work on “price transparency”, Social Minister Rauch stated that “pricing intelligibility” should be increased in this way. Rauch said it is unrealistic to believe that “after the two-hour peak” food prices will fall “20 percent” within the same week. However, he expressed his understanding that the Austrians expect results as soon as possible. He also announced that another summit will be held this week to discuss further measures.
The reduction in VAT, transparency in prices, a cheap range of staple foods, measures to strengthen competition and prevent food waste: all of this is on the table.
— Johannes Rauch (@johannes_rauch) May 8, 2023
An explanation is expected from companies on “exorbitant prices”
Representatives from the retail and industry sectors were also invited to the summit, where Minister of Agriculture Norbert Totschnig will attend on behalf of ÖVP. Pointing out that the government wants to examine price increases, Kogler said, “Companies have to explain themselves” He addressed the merchants with his words.
Finance Minister Brunner (VP), who did not attend the summit, rejected the VAT reduction in advance, in a statement to Ö1-Journal. On the other hand, the “French model” brought up by Brunner was rejected on the grounds that it “doesn’t make sense”. The model in question included many large food companies giving up price increases for a period of three months.
It was learned that Economy Minister Kocher (VP) did not attend the summit as he was in New Zealand. Kocher announced that he wants to provide more competition with a price database and will hold his own expert summit towards the end of the week.
Will: Prices needed, “otherwise traders are threatened with death”
Rainer Will, Managing Director of the Trade Association, said after the meeting that the “20 to 30 cheapest items” will now be highlighted and constantly updated on websites and supermarkets. However, Will points out that “big levers” of politics are needed. “Because the prices are mainly due to high energy prices and its consequences. Our profit margins are between one and two percent. Prices are necessary, otherwise the tradesmen are in danger of dying.” warned.
Will denied any accusations regarding the price hike in his industry on ORF’s “ZiB 2” on Sunday evening. Will’s “Competition is excellent. Even though the food market in Austria is almost entirely controlled by the four big chains Rewe, Spar, Hofer and Lidl, none of these retailers can raise their prices because otherwise they will lose customers.” His words caught attention. Saying that cause and effect are confused when it comes to inflation, Will said, “The reason is the skyrocketing energy costs, rent increase and personnel costs, as well as the financing costs of the banks” said.
Criticizing that the government only supports industry and fails to support trade, Will argued that food prices in Austria are the least increasing in EU comparison. (yenivatan.at)
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