Wifo-Chief: Crisis Mechanism Against High Energy Prices Possible

"An emergency mechanism would be a good idea. However, it must be limited to emergencies," said Wifo Chief Gabriel Felbermayr on Thursday during the presentation of the summer forecast in Vienna. Looking back, the price spikes in 2022 were indeed also due to "speculative exaggerations," argued the economic researcher. "The devil is in the details there."

Wifo Chief Urges Caution with Crisis Mechanism

Felbermayr warned of possible energy shortages from producers if they operate fewer power plants. The expectation of state subsidies could also drive prices further up. "One must be cautious. But the intention to prevent a recurrence of the extremely high prices like in 2022 is fundamentally correct."

"Price interventions should become possible, they are a conceivable means for me," Chancellor Christian Stocker (ÖVP) stated on Tuesday. "We need a crisis mechanism that protects Austria from high energy prices," Vice Chancellor Andreas Babler had previously said. The NEOS were reserved.

The recently escalated - but now somewhat calmed - conflict between Israel and Iran recently led to strong disruptions in the crude oil markets. It was feared that in the event of a blockade of the so-called Strait of Hormuz by Iran, oil prices could rise well above the 100-dollar mark.

(APA/Red)

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