German Chancellor Olaf Scholz has pledged support for the ailing steel industry, promising competitive energy costs and fairer international framework conditions. The industry has struggled against low-cost competition from Asia and a volatile market. Scholz also called on the European Commission to take decisive action to address distortions of competition.
Germany is the largest steel producer in the EU. According to the Federal Statistical Office, around 71,000 people were employed in the industry at the end of September.
However, the steel companies are in a difficult situation. In November, Thyssenkrupp Steel announced that it plans to slash 11,000 jobs within six years.
Chancellor Olaf Scholz pledged support for the ailing heavy industry, especially in light of high energy costs, at a meeting with steel industry representatives.
Olaf Scholz met with management, works councils and trade union representatives from companies such as Thyssenkrupp Steel Europe, Salzgitter and ArcelorMittal.
German Chancellor Olaf Scholz on Monday promised competitive energy costs and fairer international framework conditions to labor leaders and steel executives from companies such as Thyssenkrupp Steel Europe, Salzgitter and ArcelorMittal.
The industry has struggled for years against low-cost competition from Asia and a volatile market.
During the meeting in Berlin, the chancellor emphasized his commitment to competitive energy costs and fairer international framework conditions, and to continue to support the German steel industry in its efforts to modernize production, the government announced.
Scholz wants to cap the cost of transporting electricity through the transmission grid at three cents per kilowatt hour. In addition, the German government wants to finance part of the costs for the transmission grids so that the grid fees do not increase in 2025.
However, Scholz lacks a majority in parliament since he fired former finance minister Christian Lindner, and passing these proposals would require support from the opposition.
Sholz calls for EU-level protection
Action is also needed at the EU level to shore up the ailing steel industry, a spokesman for German Chancellor Olaf Scholz said after a steel industry summit.
According to Steffen Hebestreit, Scholz has called on the European Commission to act decisively when it comes to distortions of competition caused by dumping and market-distorting subsidies, and that the EU must consider further trade protection measures for the steel sector.
