(Bloomberg) -- Austria announced energy subsidies worth 2 billion euros ($2.2 billion), including tax cuts and employee compensation, in an effort to ease the burden of rising costs on the economy.
The steps, announced by Finance Minister Magnus Brunner and Climate and Energy Minister Leonore Gewessler on Sunday, double Austria's commitment to mitigating soaring energy costs for households and businesses.
Governments across Europe are trying to limit the impact of Russia's war on Ukraine as well as earlier sharp increases in gas prices.
The latest measures include a 90% cut to natural gas and electricity tariffs through mid-2023, at a cost of 900 million euros, and higher commuting subsidies for employees totaling 400 million euros.
The government will also offer support to companies by delaying some tax payments, and will also provide 250 million euros in investment support, intended to help ease energy reliance on Russian gas.
Cutting Off Russia Risks Recession for Austrians Hooked on Gas
The moves come on top of 1.7 billion euros worth of cost rebates and other steps offered in a earlier round of support.
While Austria has one of the highest shares of renewable electricity production in the European Union, it gets 80% of its natural gas from Russia. The government is working on mandatory stockpiling for gas storage companies, and wants to build a national strategic reserve that covers more than 10% of annual consumption.
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