Austrian government presents package to cushion inflation

Category : Top Stories

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. levy / ˈlɛv i / (n.) – an amount of money that one has to pay to the government

    The government imposed a levy on luxury goods.

  2. coalition / ˌkoʊ əˈlɪʃ ən / (n.) – a group of people, organizations, or countries that have joined together for a common goal

    Several activist groups formed a coalition to fight against climate change.

  3. conservative / kənˈsɜr və tɪv / (n.) – a person who supports traditional political and social practices

    A lot of conservatives are against same-sex marriage.

  4. slate / sleɪt / (v.) – to schedule or plan for something to happen

    The band is slated to perform at the music festival tomorrow.

  5. envision / ɛnˈvɪʒ ən / (v.) – to imagine something to look like or happen in a certain way

    A lot of citizens envisioned a better future after the presidential candidate gave a hopeful speech.


Read the text below.

The Austrian government presented a package of measures aimed at cushioning the impact of high inflation that includes 500-euro ($523) payments for all residents and a three-month delay to a new levy on carbon dioxide emissions.

The government, a coalition of Chancellor Karl Nehammer’s conservatives and the environmentalist Greens, put the price of immediate measures at about 5 billion euros and said the package will cost a total of 28 billion euros through 2026. It says it aims to bring relief first to people on low incomes; the unemployed and people on low pensions are slated to get a payment of 300 euros each.

That’s in addition to 500 euros each for everyone — half of that for children, and half of it described as a “climate bonus.”

The government decided to delay from July until October the introduction of a CO2 pricing plan that envisions an initial levy of 30 euros per ton of carbon dioxide, rising to 55 euros in 2025.

Other measures include “electricity price compensation” for business and a grant for energy-intensive companies and, in the longer term, a move to address wage increases being eaten up when they move recipients into a higher tax bracket.

Austria’s annual inflation rate hit 8% in May, in line with similar rates in other European countries fueled by the Russian invasion of Ukraine.

This article was provided by The Associated Press.

Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The Austrian government presented a monetary package to aid Austrian residents in fighting against inflation. Do you think your government should also implement the same initiative? Why or why not? Discuss.
  • According to the article, the unemployed and people on low pensions are slated to get a payment of 300 euros each. Do you think it’s necessary for governments to give unemployment aid? Why or why not? Discuss.

Discussion B

  • Austrians will also receive an annual “climate bonus” to help them switch to eco-friendly alternatives. If you receive a climate bonus, what eco-friendly activity or project would you use it for (ex. buy an electric car, buy gardening materials)? Discuss.
  • What eco-friendly initiatives has your government implemented? Do you think these initiatives are enough to encourage people to adopt an eco-friendly lifestyle? Why or why not? Discuss.
Category : Top Stories