![]() The deduction, announced on 20 July 2022, will cover 80 percent of an average household consumption and will cost around €250 million. The carbon tax, €30/tonne, will be postponed until October. The measures also include relief for companies, such as reducing non-wage labour costs.įrom September 2022 to September 2023, the federal government of Lower Austria agreed on a deduction from residential electricity prices of €0.11/KWh. ‘Cold progression’ occurs when inflation pushes taxpayers into higher income tax brackets in progressive tax systems as wages increase to stay ahead of rising prices. However, Euractiv reports that most of the fundings will be spent on abolishing the so-called ‘cold progression’ in income taxes, which will cost €20 billion from 2023 until 2026. Employee bonuses will become tax-free up to €3000. The climate bonus, a money-back bonus, will be raised (to €500 for adults and €250 for children) and tax deductions will also increase for the middle class. Payments of (€300) will be made to particularly affected groups with low incomes and low pensions well as contributions to particularly energy-intensive companies. The package is worth €28 billion to be rolled out until 2026 (€4 billion coming from the state budget and the remaining €24 billion founded through higher VAT revenues and increased consumption). On June 14, the Austrian government launched a very ambitious package of measures to contrast energy-driven inflation. The government will also offer support to companies by delaying some tax payments, and will provide €250 million in investment support, intended to help ease energy reliance on Russian gas. The latest measures include a 90% cut to natural gas and electricity tariffs through mid-2023, at a cost of €900 million, and higher commuting subsidies for employees totalling €400 million. On 20 March 2022, Finance Minister Magnus Brunner and Climate and Energy Minister Leonore Gewessler announced energy subsidies worth €2 billion, including tax cuts and employee compensation, in an effort to ease the burden of rising costs on the economy. Moreover, the mandatory green electricity levy (a contribution to support RES adoption) was paused for 2022. Households will receive €150 in energy cost compensation, an amount that will be doubled for those in need. O n 28 January 2022, the government announced on a relief package of €1.7 billion for almost all households on 28 January 2022. The third tab represents how much governments have allocated to support utilities in meeting their liquidity needs - through loans, bailouts and fully fledged nationalisations. The second tab displays total support to households and firms on a per capita basis. The first tab of the figure below shows the funding allocated in the period September 2021 to January 2023 by selected EU countries to shield households and firms from the rising energy prices and their consequences on the cost of living. ![]() At Bruegel we have looked at how to make the EU Energy Platform an effective emergency tool for joint gas purchasing, we have made an assessment of Europe’s options for addressing the crisis in energy markets, and we have called for a grand bargain at the EU level to steer through the energy crisis. ![]() Similarly, long-term measures to counteract energy-price volatility are also of extreme importance. While policies at the regional level can have a sizeable impact on consumers, for example in Belgium, in most European Union countries both energy regulation and levies are set at the national level. Measures at the sub-national and supra-national levels are excluded from the scope of this dataset, but this by no means implies that they are less relevant. The purpose of this dataset is to track and give a (non-exhaustive) overview of the different policies used by countries at national level to mitigate the effect of the price spike for consumers. The current increase in wholesale energy prices in Europe has prompted governments to put in place measures to shield consumers from the direct impact of rising prices. ![]()
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