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The Austrian government is aiming to reduce energy costs and revamp the industrial sector

The Austrian government is aiming to reduce energy costs and revamp the industrial sector

Austria's three-party ruling coalition announced on Tuesday that it plans to overhaul the energy market in order to lower costs for consumers, and develop an industrial strategy to boost weak economic growth.

Ministers of the newly formed centrist coalition met in their first working retreat to develop plans for tackling the nation's ballooning budget deficit and reviving an economy that had been contracting over the past two year.

Austria has also been working to find reliable energy sources since it weaned itself off Russian gas late last year, when the natural gas supply was suddenly shook up.

Christian Stocker said that today was the day to address industrial strategy and energy markets. He added that the current trade disputes between western powers, as well as the effects of the ongoing war in Ukraine, posed challenges.

Stocker, who is a conservative member of the People's Party, stated that one of the main goals of the government was to reduce energy costs, both for businesses and households.

Stocker said grid costs could be reduced through the expansion of the network. He also stressed how vital it was for industries to remain competitive that power prices are kept low. Stocker said that companies could be encouraged to do this by making it easier to write off investments.

He told a news conference that the government also wanted to cut red tape in order to accelerate approvals.

Stocker stated that the ruling coalition consisting of OVP (OVP), Social Democrats (SPO), and liberal Neos, aims to provide details on how they will boost the economy before the end of this year.

He added that experts predict a difficult year for the economy in 2025, both from the perspective of the growth rate and the job market. (Reporting and writing by Alexandra Schwarz Goerlich, Editing by Madeline Chambers).

(source: Reuters)