Austrian renewable energy support law falls

Government predicts "difficult negotiations" after parliament rejects proposed new support regime

Austria's parliament has rejected a government draft law establishing new levels of state support for renewable electricity from 2005 to 2010. The law failed to receive the required two-thirds majority after the opposition Social Democrats voted against it.

The proposed law has drawn protests from Europe's renewable energy industry, which claims the sector will be harmed (EED 30/11/04). Austria's economy and environment ministers also fell out over the plan in the summer (EED 04/08/04), before striking a compromise.

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