New Austria government targets lower energy costs and industrial revamp

VIENNA (Reuters) - Austria's new three-party ruling coalition said on Tuesday it planned to overhaul the country's energy market to bring down costs for consumers and to develop an industrial strategy to lift weak economic growth.

In its inaugural working retreat, ministers from the centrist coalition that formed earlier this month met to craft plans aimed at tackling the country's swollen budget deficit and lifting an economy that has contracted for the past two years.

Austria is also working on how to secure reliable sources of energy since weaning itself off Russian gas during a rapid shake-up of natural gas supplies late last year.

"Today is the day we'll address the industrial strategy and the energy market," said Chancellor Christian Stocker, adding that current trade disputes among western powers and the ongoing effects of the war in Ukraine posed challenges.

One of the government's main goals was to lower energy costs for both businesses and households, said Stocker, a member of the conservative People's Party (OVP).

Stocker said that grid costs should be reduced, pointing to how important power costs were for industry to be competitive. The government also aimed to reduce red tape so that pending approvals are accelerated, he told a press conference.

(Reporting by Alexandra Schwarz-Goerlich; Writing by Dave Graham; Editing by Madeline Chambers)