The eleven German states with steel sites, Baden-Württemberg, Bavaria, Brandenburg, Bremen, Hamburg, Lower Saxony, North Rhine-Westphalia, Saarland, Saxony, Saxony-Anhalt and Thuringia, published a resolution in Berlin in which they called for the German Federal Government to work towards fair market conditions for the domestic steel industry.
The state of Saarland organised and headed the joint meeting. In addition to the participating state ministers, Federal Minister Dr Robert Habeck and top representatives of the German Steel Association (Wirtschaftsvereinigung Stahl) and the Industrial Union of Metalworkers, IG Metall, also attended the meeting at the official office of Saarland’s permanent delegation in Berlin.
Specifically, the member states are calling for the Federal Government to improve the German steel industry and create good investment prospects. The goal is to create competitive conditions that are as equitable as possible, both at a European and at an international level. Regarding the price level of electricity, the Alliance welcomes the Federal Government’s decision to reduce the electricity tax for the manufacturing industry to the European minimum level, but at the same time, it issues a reminder that the German market is still a long way away from an internationally competitive price. Stabilising grid usage fees and bridge financing of electricity prices for the energy-intensive industry are particularly necessary.
Another focus of the meeting was the future transformation of the steel industry following the ruling of the Federal Constitutional Court. In principle, the Alliance welcomes the fact that the Federal Government intends to press ahead with its programmes to decarbonise industry and develop the hydrogen economy. However, the procedure must be clarified as quickly as possible.
The members of the Steel Alliance request that the Federal Government ensures that, in the long term, state funding is also made available to SMEs in the sector along the entire transformation path. This is to ensure planning reliability and competitiveness. In addition, the states making up the Steel Alliance are petitioning the Federal Government to support the industry’s transformation efforts in a constructive manner by accelerating the expansion of renewable energies and by advocating for the introduction of green priority markets for primary industry sectors at the EU level.
The steel industry’s transformation must also be secured in terms of foreign trade. To this end, the Federal Government is called upon to campaign for a limited continuation of steel safeguards at the European level to prevent trade diversions that distort competition, if possible until mid-2026.
Additionally, the EU’s anti-dumping and anti-subsidy measures are to be consistently applied and regularly reviewed to determine their effectiveness.
The resolution was presented to and discussed with Federal Minister Dr Robert Habeck at the meeting. Top representatives of the German Steel Association and IG Metall also had the opportunity to present their statements at the meeting.
Dr Robert Habeck, the Federal Minister for Economic Affairs and Climate Action, commented: “Decarbonising the steel industry is crucial for a successful shift towards climate neutrality. Even after the ruling of the Federal Constitutional Court, the Federal Government is taking a hard line in sticking to the path it has chosen, which includes the four major steel projects selected for IPCEI Hydrogen and the climate protection agreements. Its objectives are to keep the steel industry in Germany, establish it at net zero and give it a perspective for the future. We can only succeed in this by working closely together with state governments, industry and workers' unions. That’s why the initiative for today's meeting makes me so happy: it highlights the consensus of federal and state governments as regards the key areas of action and challenges for the German steel industry.”
Jürgen Barke, Minister for Economic Affairs in Saarland, said: “The steel industry is a significant economic and employment factor in Germany – and for the Saarland, its importance is critical. This means we have great political responsibility to create appropriate framework conditions for this industry. With this resolution, the steelmaking states have jointly demonstrated that they are determined to successfully conclude the transformation projects on the path to green steel. To this end, all companies need reliable funding commitments from the Federal Government to cover the additional investment and operating costs as well as internationally fair competitive and framework conditions for the industry. Today’s meeting has sent an important signal for this leading industry’s sustainability.
Mona Neubaur, Minister for Economic Affairs, Industry, Climate Action and Energy of North Rhine-Westphalia, said: “The next five years will decide whether the industry transformation succeeds, and that is why there is absolutely no time to lose. If you act quickly now, you have every opportunity to get the best possible position in the new priority market for green steel. As today has proven once again, Germany has a great deal of potential for innovation. More than ever, creative minds, the best ideas and suitable framework conditions are needed to secure and strengthen the competitiveness of our companies.”
Kerstin Maria Rippel, Chief Managing Director of the German Steel Association, comments: “The steel companies in Germany have a consistent focus on climate neutrality; they are in the middle of the first phase of their transformation and are grateful for the support they have received so far from the steelmaking states and the Federal Ministry of Economics. Since a clear political perspective is also needed for the next phases, we welcome the resolution adopted today, as it contains a strong commitment to Germany as an industrial location and calls on our Federal Government to focus on the next implementation steps. This implementation roadmap needs focus and speed: Competitive electricity prices are particularly urgent as an indispensable foundation for production, but the expansion of renewable energies and the associated grids, the build-up of hydrogen and its corresponding infrastructure, fair international trade conditions and creating green priority markets are just as important.”
Jürgen Kerner, Second Chairman of IG Metall, says: “The steel sector plays a key role in decarbonising our economy: This is where we have the greatest leverage to quickly achieve net zero carbon emissions in our industry. A strong steel industry is also essential for the transition to green mobility and energy. As a primary industry, the steel sector is a prerequisite for resilient supply networks. Tens of thousands of well-paid jobs with collective bargaining agreements depend directly on this industry, and up to four million jobs are indirectly affected. That’s why every single euro spent on the green transformation of the steel industry is money well invested in the future of our industrial sites and good, secure jobs. This is the transformation of the century for our industry. It simply can’t be covered by the current budget. Instead, we need to reform the brake on debt or create a special fund to finance the transformation. All political forces, the Federal Government and the opposition, at the federal and state level, must now quickly agree on how to solidly and reliably finance this restructuring. Workers need security during this transformation.”
