Felbermayr on KV qualification: At least 9.6 percent more

Felbermayr on KV qualification: At least 9.6 percent more
Gabriel Felbermayr, head of the Wifo economic research institute
Image: (Volker Weihbold)

He is less likely to believe that the rent cap and other government measures will take effect in the next few months, he said on the ORF program “Im Zentrum” on Sunday evening. For the SPÖ and FPÖ, the government is to blame for the high inflation, which the ÖVP contradicts.

“We need optimism and confidence,” said ÖVP MP Andreas Hanger. SPÖ unionist Josef Muchitsch and Dagmar Belakowitsch, deputy club leader of the FPÖ, acknowledged this in unison with the demand: “Finally do something.” Felbermayr, in turn, pointed out that households’ real disposable incomes were “relatively constant”, which was a result of the one-off payments. Lower income groups in particular would have benefited from these, but things look a little different in the middle class.

Felbermayr does not expect a deal below 9.6 percent

According to the economist, it is clear that high inflation also leads to high wage agreements – but it should be worth considering not using rolling inflation (the past increase in prices over the past twelve months) when negotiating wages, but rather a more recent inflation rate. But that will probably no longer be the case with this year’s autumn wage round.

Trade unionist Muchitsch made it clear: “We will not be able to get over rolling inflation and other things.” Georg Knill, chairman of the Industrial Association (IV), emphasized that the economy cannot bear the entire burden of inflation in the autumn wage round. Municipalities and municipalities would also have to make their contribution by reducing taxes. The industry expects a recession of up to minus four percent, and there is great concern about the downturn.

The Styrian industrialist Georg Knill is the brother of Christian Knill, chairman of the metal technology industry, which is launching the autumn wage round on September 25th. The basis for the haggling is rolling inflation of probably 9.6 percent. Even economic researcher Felbermayr does not expect a conclusion below this.

Gas price cap “very expensive and very inaccurate”

While Muchitsch and Belakowitsch agreed that government intervention in prices was useful and should have been done long ago, Hanger said that a gas price cap would be populist and a VAT reduction would be a watering can principle. Felbermayr also doesn’t think much of such a tax cut, saying it would be “very expensive and very inaccurate.”

Belakowitsch, in turn, reminded Hanger of the price commission announced by the government. “Where is she,” said the FPÖ top politicians. “The fact is that it has become more difficult for people. A lot of things are homemade,” she said in the sometimes emotional discussion.

In any case, Hanger is confident that inflation will decline, as economic researchers expect. And how will the ECB decide next Thursday at its interest rate meeting if there is an increase, ORF presenter Claudia Reiterer wanted to know. Felbermayr’s answer: “Looks like it.”

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