Speaker: Ladies and gentlemen, I would like to warmly welcome you to the press conference on the occasion of the Council of Ministers meeting. Federal Minister Wolfgang Hattmannsdorfer, State Secretary Michaela Schmidt and State Secretary Sepp Schellhorn are available for discussion. Mr. Federal Minister, please. Federal Minister Wolfgang Hattmannsdorfer: Ladies and gentlemen, esteemed colleagues. People rightly expect the government to solve problems and move the country forward . The autumn of results was announced, and today we also provided proof that we are implementing a first major package of measures with the industry and energy package . We are reducing electricity costs, strengthening Austria's economic position, and ensuring that Austria is prepared for any crises in good time . And we prove that we consistently deliver in the economic and energy sectors, that the industrial strategy of the Republic of Austria is implemented point by point . Jobs and prosperity depend above all on competitiveness. Only a competitive economy provides the foundation for jobs and a functioning welfare state . And it is our duty to do everything we can to maintain precisely this competitiveness. The industrial strategy is the compass for our actions. We have already implemented 43 of 117 measures and today another key measure, the industrial electricity price package for energy-intensive industries, is being sent out for review . And we are demonstrating that energy is a top priority for this federal government. Contrary to all expectations, we pushed through the biggest electricity market reform at the beginning of the year , even with a two-thirds majority in parliament, and it was even confirmed by the IHS that electricity costs in Austria have fallen by over 10% . Contrary to all expectations, we passed the Renewable Energy Expansion Acceleration Act through parliament with a two-thirds majority, so that we can generate more energy, because the greater the supply, the cheaper the price. And with the industrial electricity price package, we are now delivering another key package of measures for our competitiveness. It is our aim to ensure that energy-intensive industries remain in Austria, that they do not relocate, and that we guarantee that there will be future jobs in this sector in our republic . We have a clear ambition, with our industrial strategy, for Austria to rise into the top 10 most competitive industrialized nations in the OECD area. We aim to increase the share of industry in GDP from 16% to 20%. And above all, it 's a question of a secure, but especially affordable, energy supply. We agreed in the double budget that we would make 750 million euros available over 3 years within the framework of the industrial electricity price and the SAG+ . And both laws are going into review today so that everything can be passed in time for this year. Looking at a European comparison, one sees large industrial consumers when looking at consumption. Then, in 2025, prices in Austria were 11.9 cents per kilowatt hour, better than in Germany, where 12.8 cents per kilowatt hour were paid. Or, also of great industrial importance, Italy with 13.4 cents. But the EU average was 10.9 cents per kilowatt hour. This means we must have a very clear ambition and a long-term goal that energy prices evolve from a competitive disadvantage to an advantage. And now the first step is to make a very concrete contribution by supporting energy-intensive industries . We are expanding our support from currently around 60 businesses to over 500 businesses. We expect that 520 businesses will also be eligible under this new model. We are massively expanding our industries. While previously only steel, aluminum, paper, pulp and parts of the chemical industry were eligible, there is now a significant upgrade from 60 companies to over 500 companies. When I think of batteries, fertilizers, plastics, glass, wood-based materials, the metal and chemical industries, but also the entire pharmaceutical sector, to name just a few examples, right up to the electronics industry. All industries that form the backbone of our economy. 600,000 people depend on these industries, which will also be eligible for subsidies in the future, making this a crucial measure for competitiveness. We stipulate that 50% of the support payment must be reinvested in energy efficiency or decarbonization measures. This means that the funding should not simply go directly into the EGT (Energy Efficiency Ratio), but should ensure that this funding is used in such a way that less energy is consumed in the end and the whole process is also more environmentally friendly. Secondly, we are introducing a very clear "Made in Europe" commitment for companies that will also benefit from this funding, thus representing the first implementation step of this Federal Government's "Made in Europe" agenda. And thirdly, we are making a very clear location guarantee, because the goal must be that these companies and their jobs remain in Austria, and that this is also a condition for receiving funding. The second major package that we are sending out for review today is the electricity price crisis mechanism, because I believe it is crucial that Austria is prepared in good time in case an energy crisis hits us again. The current geopolitical risks clearly demonstrate why we need to take precautions now. International energy price shocks can also affect Austria. And that's why it's important to be prepared in good time. And we only need to look back at the year 2022 to see that we had an inflation rate of 8.6%, with all the resulting impact on competitiveness and a wage-price spiral, which is also one of the reasons why we have to fight so hard for our competitiveness today. If prices get out of control again, we mustn't just start thinking about concepts; the mechanism that will then kick in to break inflation, to break the wage-price spiral, and to ensure that we don't suffer a setback in our competitiveness, must already be in place. The mechanism is clearly regulated. There are two parameters that are crucial here.  One factor is the wholesale prices. If the price exceeds 150 euros per megawatt hour for 3 consecutive months on a 6-month average, this crisis mechanism will be triggered, provided that the average energy price is above 16.5 cents per kilowatt hour net for households . That means a very clear regulation. Clarity for households, for the people in Austria, but also for businesses. What does that mean exactly? Assuming an energy price of 17 cents per kilowatt hour, this means a saving of 250 euros for every household. If we take the values ​​from the 2022/23 energy crisis with an average price of 25 cents per kilowatt hour, this means a saving of 520 euros for every household. And the second package in this energy crisis mechanism concerns the economy. It is not only households that are affected, but also businesses. And here's a calculation example. If one were to consider the energy crisis of 2022/23 , this would equate to an energy price support of 7 cents reduction. This is a significant contribution, also for the economy. Let me give you an example: a small baker or a small carpenter operating a CNC milling machine with a consumption of 100,000 kilowatt hours would save 7,000 euros in the event of a crisis, thus making a significant contribution to preserving jobs even in energy-intensive sectors . Energy is increasingly becoming a geopolitical weapon. And today, in preparation for this, we are setting up a protective umbrella in Austria. We will immediately break the inflation spiral and ensure that 2022 is not repeated, but that we have a suitable safety net , that competitiveness is maintained, that inflation remains under control, that businesses can continue to operate successfully, and above all, that households are supported and assisted in the event of an energy crisis. Speaker: Thank you very much, Mr. Federal Minister. Madam State Secretary, please. State Secretary Michaela Schmidt: Dear Minister, dear State Secretary, ladies and gentlemen. Yes, the federal government is operating in a challenging triangle. We need to consolidate the budget, we need to fight inflation, and at the same time we need to ensure growth and employment. And everything we do must contribute to achieving these goals . And energy policy is often at the center of this. I am all the more pleased that we have now finished with the energy price crisis mechanism for electricity. When I first spoke about it in November of last year, we were met with many disbelieving faces; now it is a reality. What is it about ? In the event of exploding energy prices due to international disruptions, a statutory crisis mechanism will be implemented in the future. If the wholesale price and the average end-customer price for electricity rise above 16.5 cents, a price cap of 10 cents per kilowatt hour will be automatically activated for end customers. For the electricity experts among you, this is about the net energy price. But in the end, it's not about 16.5 cents or even 10 cents; it's about ensuring that a family isn't suddenly faced with an electricity bill they simply can no longer afford. And this safety net, this emergency brake, this 10-cent guarantee, is not paid for with tax money, but through a contribution from electricity producers, whose profits inevitably explode in such times of crisis . Because even if oil and gas prices rise rapidly, our domestic renewable energy, our hydroelectric, wind, and solar power plants, produce at almost constant costs, regardless of whether the Strait of Hormuz is being opened or closed for the hundredth time. And with this, we ensure that Austrians finally benefit more from our domestic, affordable energy supply, i.e., "local electricity instead of price explosion". I think that's fair, because after all, it was also our citizens who invested in these renewable energies in recent decades. And ladies and gentlemen, let me also state this clearly: I hope that this lid will never be used, but if it is necessary, we are prepared. Why is this so important? Because such a cap effectively counteracts energy price-related inflation and prevents the price-wage spiral from even beginning to tip over. And it helps to keep life affordable for Austrians, and it also strengthens our economy, because every tenth of a percentage point of inflation that we avoid helps our industry in particular. And speaking of industry, I have visited many energy-intensive industries in recent months , and I know how crucial the issue of energy is for these companies and therefore also for the jobs that depend on them. And we see efforts everywhere to reduce energy consumption and CO2 emissions. However, there are still many companies, be it steel or glass, cement or paper, that depend on competitive energy prices . And behind these companies are not just production halls and balance sheets, but behind them are people. People who go to work in the morning, who feed their families, and who trust that their job will still be there tomorrow. And therefore, with support for industry in the form of the industrial electricity package, a location guarantee has also been agreed upon. Companies receiving more than 2 million euros in funding must retain at least 90% of their workforce. Here too, the principle applies: we are doing something for a thriving industry and for the employees who need a secure job. And we are doing this without jeopardizing the budget consolidation. Let me summarize in conclusion. The government has ushered in an autumn of results in the energy sector , with very important legislative projects and a multitude of measures, from facilitating electricity storage to the social electricity tariff. And now we present the next package. We have completed two major projects: the 10-cent cap for times of crisis and the industrial electricity package. But it continues. Because behind the often quite abstract measures are real people. People who can afford their lifestyle. People who have secure jobs and people who trust that this country will remain economically strong in the future . That's exactly what we're working towards. We will continue on this path with focused work, clear priorities and one goal in mind: to make Austria stronger, more competitive and more affordable. Thank you. State Secretary Sepp Schellhorn: I also wish you a pleasant morning. The Minister of Economic Affairs explained the figures impressively. I believe I can say, as a self-employed entrepreneur on leave, but also as a politician, that it is particularly important that there is planning security, also for companies, and that we, the federal government, also have the courage to address things and not just wait until something happens. Current energy dynamics and external factors play a major role here. And even WIFO head Felbermayr mentioned it last week during the press conference. And that is the right answer to the fact that we are already thinking about it now and letting a mechanism run its course – what if something happens? We need to take two things into account accordingly. It doesn't require another outburst of anger, but rather the courage, the outburst of courage to prove that we are already thinking about this and guaranteeing this planning security. Planning security also means that we, of course, have also advocated within our party to cement the industrial electricity price and the extension of the site security law until 2029. I just want to tell you about three numbers that are important to me. This amounts to 250 million euros annually, available from 2027 to 2029 for industrial electricity prices and site security . That means approximately 455 companies are potentially eligible for this industrial electricity price. And with regard to the Site Security Act, we will expand the circle from 60 to 200 companies in the future. That's a decent bridge until 2029. And for an industrial location that remains competitive in this fiercely contested market, even on this continent of Europe, this location guarantee is vital, I believe. For our companies, and I don't need to tell you this, we don't compete between Lower Austria and Upper Austria or Linz, but rather we compete across continents. And it is therefore particularly important to send a clear message here. If energy becomes permanently cheaper, eventually not only will electricity be purchased elsewhere, but investments will also be made elsewhere. And that is our principle, which we work on here step by step. One can always criticize things, but one must also report on what we have set in motion recently, driven by external factors, but with the courage to make decisions. I believe this will create a more level playing field in Europe. Entrepreneurs should continue to produce and invest in Austria, and this is a sign of that. And at the same time, it is important to us that this money, which creates the future, a significant part of the funding flows into decarbonization, energy efficiency and electrification. We want industrial production in Austria to have a future, and this is part of that; we want this future to be cleaner, more efficient, and more competitive. What I am particularly pleased about in today's package is that deregulation doesn't stop here either; it now appears almost everywhere – in industrial strategy, in energy policy, in approval procedures, in digitalization, and also in the reform partnership. A year ago, we, or rather I, often had to explain why deregulation even needs to be a separate political issue. We were in Kaprun last week, visited the power plant at Verbund and realized that it is a path that is simply a cross-cutting issue. And that is what we are committed to, especially in the accelerated procedures, in all these areas where we have already worked together with the Federal Minister to bring about much faster approvals. That's why we also need to reduce bureaucracy. And I believe the discussion is also one of the current issues with the countries; this is a cultural shift that we must address, the fact that we are all in the same boat. I mean everyone, not just the federal government, but also the states must ensure this, because everyone who loses their job is sad, but they are also unemployed – the mayor, the state governor, and also the federal government. And that's why I believe we must do everything we can to offer relief. Create space in terms of reducing bureaucracy, create space in reducing time and in accelerating procedures, but at the end of the journey also create space so that we can continue to drive down the cost factor of labor in order to maintain this competitiveness. And that is why I have repeatedly appealed in recent weeks : Let's all get into the same boat and not shy away from having discussions about how to reform the state. Thank you! Speaker: Thank you very much. Due to the subsequent appointments, we will hold two Q&A sessions, collect the questions, and then present them together to the panel. May I briefly ask you to mention the medium when you ask your question? Mr. Westhoff, please. Matthias Westhoff, ORF, Zeit im Bild: I have two questions. One place where you see particularly strong increases in energy prices is at the petrol stations, every single day. Diesel costs approximately €2.20 per liter. Is there a plan to substantially reinstate the fuel price cap so that it has a greater effect than simply returning the additional revenue generated from the mineral oil tax? And the second question goes to the State Secretary. According to media reports, the SPÖ is holding a crisis meeting today at 3 p.m. Do you expect Andreas Babler to relinquish one of his positions, or what is the reason for this? Speaker: Thank you. Please go over there. Simon Rosner from the Kleine Zeitung: Just a little more on how it works. This includes both the industrial electricity price. What do companies need to do? And of course, households also need to do something actively. And one more quick question. I thought, I believe, that 175 million annually was included in the budget, in principle. Now it's 250 million. Does that then create a certain need for counter-financing, I think? Speaker: Thank you. I would like to ask one more question. Please. Lukas Kimeswenger Puls24/ATV: I'd like to speak with my colleague immediately afterwards. The question that naturally arises, keyword: fuel price cap: How long would you wait before making this decision? It actually expires at the end of the month. Would you really wait until the last day to make this decision and observe the market and how prices develop until then? Or would you aim to make a decision as soon as possible, for or against a fuel price cap? Thanks. Federal Minister Hattmannsdorfer: I believe that with the fuel price cap, we are proving that Austria is getting through this crisis better than other countries. Fuel prices are significantly cheaper here than in Germany, and significantly cheaper than in Italy. And many countries are interested in the model we have chosen. This ensures, on the one hand, that the state's excess revenues are refunded, and on the other hand, that there is a price reduction guarantee. This means that when international prices fall, Platts Argus' primary concern is that this must also be passed on at the fuel pumps. And I believe we have found a very good modus vivendi within the coalition, because the whole thing has to be manageable and tax-compliant. That we always make the decision in the following month in order to reflect the events of the previous month. And we now have a measure that has been proven to work , also demonstrably effective in international and European comparison. And, as in recent months, we will make the decision for the following month towards the end of the month based on market developments and the assessment of the situation . This has proven very successful so far.  On to today's big topic: the price of industrial electricity. I may try to explain it again . 600,000 people have jobs that are directly dependent on energy-intensive industries. And our aim is to ensure that energy-intensive industries remain in Austria and do not relocate, because this is not only the backbone of our prosperity. Because this is not only a guarantee for our jobs, but also because the welfare state would not function without energy-intensive industry. And the decisive question is the energy cost. And that is why we ensured in the budget negotiations that we would allocate 250 million euros per year for this measure over 3 years, totaling 750 million euros. We'll split it into two legislative packages. One is the industrial electricity price, which is shown as 75 million euros. This is a classic subsidy for all businesses with an annual consumption of over 1 gigawatt hour . The electricity costs are examined, essentially within the context of energy-intensive processes, and half of them are subsidized with a "minimum cap" of 5 cents in the assessment. That's one measure: the industrial electricity price. The second measure is the Site Security Act. 175 million euros have been allocated for this purpose. This works according to a carbon leakage principle. This means that there is a certain pricing of the CO2 price. That was 0.72 cents per ton in 2025, I think. This is then calculated using a formula, which is essentially what the energy costs are. That is, one has a carbon leakage approach, [unintelligible] companies, the other is a classic subsidy. And in total, instead of 60 businesses, there are over 500 businesses that are also eligible. Always at the end of the year, also in the accounting. A system that has proven itself, which we have already had on a smaller scale with the small SAG. And the functioning of the electricity price crisis mechanism is automatic for both households and businesses. Unlike previous subsidies, there's no longer a lengthy application process or anything like that; instead, everything is applied automatically, without application or any forms, directly to the electricity bill. Both in households and in businesses, if this mechanism is triggered. State Secretary Schellhorn: That's what you call cutting red tape. State Secretary Schmidt: Then I may add. Perhaps a very brief word on the situation in the energy markets. The situation remains worrying. It also remains very volatile. In Austria, we can produce almost all of our electricity ourselves, and we also ensure that we produce even more renewable electricity in the future, and we cap the price with the crisis mechanism. However, when it comes to oil and gas, we are almost completely at the mercy of the world markets . The only long-term solution here is that we must get out of oil and gas. Short-term fuel price cap. I would like to emphasize once again that combating inflation is not only one of the most important tasks of this government. It is also an area where our joint policy is very successful. The issue of European comparison was also addressed. We are seeing rising oil prices again because of the Iran crisis . And we also see that the fight against inflation is not yet over. As government coordinator, I believe it makes sense for the oil companies to also finance part of the relief measures . However, as mentioned, we will continue to discuss this in the Federal Government over the next few weeks. Regarding the questions about the meeting. It is a perfectly normal meeting of the Social Democratic government members. This time it will take place in the afternoon, not in the morning. So I don't understand the fuss about it at all. Speaker: Good. Thanks so much. Just as collegial and familial as the federal government is in its cooperation , so too are its press spokespeople. And I may now end the press conference. Thank you. Oh, I see, pardon me, I'm sorry. State Secretary Schellhorn: Well, you did n't address me at first. We are observing this within the government. So, of course, our position is that we need to pay attention to that. But the fact is, and now we have to say something positive again, if you look at the inflation rate – and we have been below the EU average for the last 6 months, so within limits – we have it relatively well under control. We will take a look and observe closely how this works and what further steps we will take, what initiatives we will implement. State Secretary Schmidt: There was still one question open, sorry. The question is how households benefit from the crisis mechanism. This is to happen automatically, analogously to what was seen in the last period , but this time not financed from tax money , but from the existing excess profit tax. The crisis mechanism also provides for companies, and this is crucial, that they will not be reimbursed for energy costs retrospectively as in the past, but that this will preferably happen directly on the monthly bill . Why? Otherwise, we have the problem that we have seen in the past, and which has also led to this price-wage spiral, that companies immediately pass on the higher energy costs, so we see these second-round effects, the inflation spiral begins to turn and only then are the higher energy costs reimbursed retroactively. I believe this view has been consistent across all expert opinions, namely that this is not an effective way to combat inflation. Therefore, the relief is also intended to have an immediate effect on companies. It is essential that prices do not have to be raised. Incomprehensible question. State Secretary Schmidt: Similar to the electricity price cap introduced by the previous government. So it's more or less the same model. However, this time the financing is secured by the excess profit tax from the industry, which had and would have very high profits in the event of the crisis . Federal Minister Hattmannsdorfer: The state is foregoing its additional revenue, just as we have with the fuel price cap. There is this contribution from the electricity companies, which logically increases when prices rise. That would then be revenue for the tax authorities. And the state forgoes this tax revenue and returns it in the form of the brake. Speaker: Mr. Renner, we have – excuse me for having to step in at short notice, please understand. Georg Renner, Is this important?: 2 short questions: Firstly, is it wise in such a volatile situation, as you mentioned, to impose such a job guarantee of 90% of employees on Austrian companies ? This leads to massive considerations. Second question: Our colleagues from the Kleine Zeitung reported yesterday on a case involving a Carinthian industrial company that wanted to build a 7 kW solar power plant, but the Carinthian state government refused permission, citing the view of the company from the local mountain. A completely absurd case. How does this square with the EABG's decision from six months ago? Speaker: Any further questions? Yes, Mr. Jölli. Andreas Jölli, ORF: I also have a question about this job guarantee. They said that 600,000 people work in energy-intensive industries, and 90% should receive a job guarantee . Does that mean you're accepting that 60,000 people will lose their jobs? Speaker: That was the last question and answer session. Please. Federal Minister Hattmannsdorfer: I cannot assess the Carinthian case right now, but the situation is clear. With the Renewable Energy Expansion Acceleration Act, we have clearly defined a public interest in facilities for the generation, transmission, and storage of energy. Why do the procedures always take so long? Because there are always reasons for objections, and then the appeals process is carried out, and that's exactly what we're breaking now. Because our only chance of prices coming down is to produce more domestic energy. And I have zero understanding that projects like the Tauern power line are stuck in the approval process for 17 years, that projects like the Stegenwald power plant are stuck in the approval process for 12 years because of the hazel dormouse . That is now being broken. There is a second measure that Parliament is expected to approve this month. I have already presented a very comprehensive reform of the trade regulations and plant law, because we also need to become significantly faster in the trade regulations and plant law . And there we install all types of systems completely without permits, for example, PV systems that are integrated into the building, either on the roof or on the wall. This is a real paradigm shift, because I no longer need a business license for such an energy project . We supply everything that is integrated, from the charging station to the external unit, without requiring a permit. I have several business permits for one property . This will be broken. And that is also a key focus of our amendment to the plant law, and thus in reality the third focus, because this is often forgotten: we amended the General Administrative Procedure Act right at the beginning of the period so that you can enter into large-scale proceedings with as few as 50 participants and that you can partially close proceedings. We have now followed up with the EABG. Now comes the plant law in the trade regulations and the next step is the amendment of the EIA Act. So we are making Austria faster, specifically with regard to all laws that also affect plant permits. Regarding the location guarantee you mentioned. I confess to it. Even if we invest many, many millions in funding, we as a state must consider in which direction we want to steer, in which direction should the funding millions be invested. And my primary goal is to ensure that energy-intensive industries remain in Austria. Because if the steelworks close, if the cement plants close, if we no longer produce fertilizer, then things look pretty bleak for our prosperity. And this is precisely what this enormous investment of 750 million euros entails, with the condition, firstly, of reinvesting 50% in decarbonization and energy efficiency, so that the energy bills of these companies will simply be lower in the future. Secondly, there is an obligation, which is then included in the funding guidelines, regarding Made in Europe, also a very clear requirement that funding must be used in accordance with the Made in Europe principle. And thirdly, a job security mechanism which stipulates that if more than 10% of the workforce has to be reduced in a year, then there will also be a corresponding percentage reduction in funding. That means if a company has to cut 20% of its jobs, then there will be a 10% reduction, although they have n't actually received that yet, but simply 10% less funding, because that is applied for retrospectively. So, the funding level will simply be reduced by 10%, and by 20% at 30%. But a mechanism has been introduced with the social partners, i.e., the trade union and the Chamber of Commerce, so that if it is agreed that this measure is necessary to ensure the continued existence of the company, then this reduction will be waived, because I believe that employers and employees are always best positioned to jointly assess what is needed to ensure the company's survival. And all my experience is that where there is good communication between management and the works council, everyone is in the same boat, everyone shares a responsibility, and that's why I think it's right that this basic 10% annual mechanism exists, because you also have to be able to steer a company in the right direction, but if this is then determined jointly with trade unions and the Chamber of Commerce, this measure is indispensable, and if it is indispensable, there will be no lower level of funding. Speaker: Very good, thank you. Then, with this momentum, we will enter the political autumn. Thank you for coming.