The Austrian government announced today the distribution of cash to citizens – between 300 euros and 1,000 euros in some cases – in an attempt to help the public cope with the rise in prices recorded in the past year. The country’s inflation rate was 8.1% last month. The generous grants will be distributed in addition to the energy prices already subsidized, as well as the tax breaks adopted by the current government.
The plan to fight inflation presented today by the government will cost about six billion euros from the state budget, and will be launched gradually in the coming months, first to the poor and then to the rest of the population. An Austrian family with two children will receive from the government about 2,865 euros in a combination of grants and tax benefits. A couple of retired people with different pensions will receive a grant of 1,726 euros and if a single parent receives about 1,682 euros. Austrian Chancellor Karl Nihammer presented the plan today, amid the falling popularity of his government, a coalition of Conservatives and Greens.
In addition, one of the “Greens'” election promises and their condition of joining the coalition – the imposition of a carbon tax – will be rejected in Austria at least until October, and possibly beyond. “These are difficult and extraordinary times,” the chancellor explained, referring to the rejection, which was intended to reduce the country’s carbon dioxide emissions. “We want to give public confidence,” the chancellor said.