German Chancellor proposes to reduce electricity costs for the steel industry

German Chancellor Olaf Scholz has pledged support for the German steel industry, especially given the high energy costs. This was discussed at a meeting with industry representatives, Handelsblatt reports.

According to him, the steel industry is indispensable for Germany – the sector is one of the largest employers, and the steel produced in the country is of geostrategic importance for the industrial sector and, consequently, for the country’s economic growth.

The German Chancellor noted that the government will continue to support investments in the transition to sustainable steel production with funding in the future. He also proposes to limit the fees for the use of electricity grids, and said that the federal government wants to finance part of the costs of electricity transmission.

The Chancellor intends to work at the EU level to strengthen the steel industry. He is in favor of a fairer international framework and a European steel summit in the near future.

At the same time, the opposition accuses Scholz of a “futile election campaign maneuver,” recalling previous industrial summits by the Chancellor and the Minister of Economy.

In a statement released by the German steel association WV Stahl after the meeting, its president Gunnar Gröbler said that high energy prices remain the most pressing issue at the national level.

He warned that the current €1.3 billion subsidy proposal to reduce grid charges is not enough. In his opinion, a sustainable solution is needed to ensure the industry’s long-term competitiveness.

Mr. Stahl believes that Europe should be united in defending the interests of its industry and take clear protective measures. He also called for a European steel summit.

Olaf Scholz does not rule out the possibility that Berlin could potentially get a stake in the steel business of the Thyssenkrupp conglomerate and does not take any option off the table. He cited similar cases where the government has invested to temporarily support affected companies, mentioning Lufthansa, Uniper, and Meyer Shipyards as recent examples.