Austria39;s economy is shrinking, with inflation outpacing the EU average
EU aims to phase out Russian gas by 2027, but Austria still heavily reliant
Election outcome may influence speed of energy diversification

VIENNA, Sept 23 Reuters The government that takes power in Austria after next Sunday39;s general election will face growing pressure to diversify its energy supply away from dependence on Russian gas, just as the economy is stuck in reverse gear.

No party is expected to win enough seats to win an outright majority. Opinion polls give a slim lead to the opposition farright, Russiafriendly Freedom Party FPO, and the result could influence the speed of the energy transition.

Since Moscow invaded Ukraine in 2022, the European Union has moved to rapidly replace Russian gas imports. Alternative energy sources are generally more expensive, adding to costs already stoked by the inflationary impact of the pandemic and the war.

Austria is among the most reliant on Russian gas within the bloc, and in the past two years its inflation has outstripped the EU average, even as the economy has shrunk, dragged down by a slump in its top trade partner Germany, which is grappling with the energy transition and competition from China.

Other countries aren39;t happy Austria is still consuming such large volumes of Russian gas, said Stefan SchimanVukan, senior economist at the Austrian Institute of Economic Research.

The political pressure to withdraw from it is high.

The…