Germany's Government Acts to Save Steel Industry, Jobs
The German federal government is taking swift action to bolster the ailing steel industry and fortify the country's industrial base. With thousands of jobs on the line, Finance Minister Lars Klingbeil (SPD), Economics Minister Katherina Reiche (CDU), and Labor Minister Barbara Bas are working together to implement an industrial electricity price program, aiming for it to commence on January 1, 2026.
The steel industry faces severe challenges, including a crisis in customer industries, soaring energy prices, cheap imports, and transition costs. To combat these issues, the government plans to introduce a state-subsidized lower industrial electricity price, estimated to be around five cents per kilowatt hour. This measure is expected to provide much-needed relief to the sector.
Klingbeil has proposed prioritizing domestic steel in public investments, such as those in transport infrastructure. Additionally, he has suggested protecting the EU steel industry from cheap imports and fostering a 'healthy European patriotism'. The ministers aim to pave the way for this aid, with the EU Commission's agreement required to finalize the plan by the end of the year.
The federal government is committed to providing concrete aid to the struggling steel industry. The planned lower industrial electricity price, along with other supportive measures, is intended to stabilize the sector and secure jobs. The successful completion of the parliamentary process and the EU Commission's agreement are crucial for the program to take effect on January 1, 2026.
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