Following a meeting between industry representatives, works councils and trade unions with Federal Chancellor Olaf Scholz, German government spokesman Steffen Hebestreit emphasized the importance of the German steel industry.
During the meeting, the Chancellor emphasized the Federal Government's willingness to actively support the industry. This includes competitive energy costs, fair international framework conditions and targeted modernization measures. The aim is to secure the many industrial jobs in the steel industry in the long term.
Federal Chancellor Olaf Scholz: “Indispensable for our country”
“The German steel industry is indispensable for our country,” explained Olaf Scholz. “It is one of the largest employers and offers good jobs. The steel produced in Germany is of the utmost geostrategic importance for industrial production and therefore for our economic growth.”
The German government confirmed that it would provide substantial funding for the transformation towards climate-friendly steel production. At the same time, measures are to be taken to reduce the high electricity costs for the steel industry. A statutory cap on electricity transmission costs in transmission grids of 3 cents per kilowatt hour is planned. The German government also wants to finance part of the grid costs by 2025 and ensure that they do not increase.
Hydrogen as the key to transformation
Another focus is the transition from natural gas to hydrogen. The German government wants to take a pragmatic approach here in order to ensure economical operation. Olaf Scholz emphasized that all forms of hydrogen must be considered in order to ensure flexibility and economic viability.
Electricity price compensation, which reduces a large part of the electricity costs for the steel industry, remains a key relief instrument. This instrument was recently extended and should continue to be generously designed and extended to more companies after the EU evaluation due in 2025.
Fair competitive conditions on global markets
Ensuring fair competitive conditions on global markets is an important issue for the German government. Greater climate protection efforts in the EU must be offset in order to prevent migration to countries with lower environmental standards. The Federal Chancellor called on the EU Commission to take decisive action against distortions of competition such as dumping and market-distorting subsidies. He also called for a European steel summit to tackle the challenges facing the industry together.
Demand for longer use of short-time working allowance
Works councils and company representatives asked the Federal Chancellor to extend the use of the short-time working allowance to 24 months. Olaf Scholz announced that he would instruct the Federal Minister of Labor and Social Affairs to implement this demand.
On December 9, 2024, the CEOs of major German steel companies (including ThyssenKrupp Steel, Salzgitter and Arcelor Mittal), works council chairmen and representatives of IG Metall met at the Federal Chancellery. They discussed the challenging economic situation in the steel industry, energy supply issues, the transformation of the industry and foreign trade issues.
