1. Skip to content
  2. Skip to main menu
  3. Skip to more DW sites

Austria introduces massive aid package against inflation

June 14, 2022

Under the new measures, all Austrian residents would get one-time payments, and the tax code and benefits would be adjusted to keep in line with inflation. The measures would be in place until at least 2026.

Euro bank notes in a wallet
Eurzone inflation is currently at over 8%Image: Patrick Pleul/dpa/picture alliance

The government of Austria on Tuesday introduced a relief package worth €28 billion ($29.3 billion) to combat the soaring inflation that is being felt around the world. Chancellor Karl Nehammer called the move a "historic step" that will be imperative to the most disadvantaged.

Eurozone inflation is currently at 8.1%, and experts have warned that it could remain that high for some time. In order to support those hardest hit by the skyrocketing prices of fuel and consumer goods, the package includes one-time payments and changes to the tax code so that tax payouts are adjusted for inflation. The one-time payments are set to go out to all residents and would go up to €1,000.

Another measure would from 2023 link social service payments to the inflation rate.

Paid through tax hikes

Lawmakers hope to expedite another set of one-time payments for €300 to low-income individuals and families, the unemployed, and the retired.

The new regulations would be in place until at least 2026, according to Finance Minister Magnus Brunner. The government, a coalition between the conservative Austrian People's Party (ÖVP), and the Green Party, is planning to finance the package through targeted revenue hikes.

es/dj (AP, dpa)

Skip next section DW's Top Story

DW's Top Story

A view shows the Transfiguration Cathedral damaged by Russian missile strike, amid Russia's attack on Ukraine, in Odesa
Skip next section More stories from DW
Go to homepage