The German steel industry is facing immense pressure, prompting a large-scale demonstration in Berlin this Friday, June 12. The IG Metall union announced that thousands of employees from across Germany will march from the Brandenburg Gate to the Federal Ministry for Economic Affairs to highlight the industry’s plight and demand government action.
IG Metall Demands Continued Government Support
Jürgen Kerner, Second Chairman of IG Metall, emphasized the need for sustained political support. “The government has done a lot for the steel industry in recent months – under our pressure,” Kerner stated. “It must not stop halfway now. It must fulfill its promises.”
Prominent figures expected to join Kerner at the rally include Green Party leader Felix Banaszak and Left Party leader Ines Schwerdtner. Works council chairpersons and HR directors from the steel sector are also slated to speak.
Industry Under Multifaceted Pressure
The German steel industry, primarily located in North Rhine-Westphalia, Lower Saxony, and Saarland, is grappling with a multitude of issues. These include a downturn in customer sectors, particularly the automotive industry, high energy costs, cheap imports, especially from China, and the substantial expenses associated with transitioning to climate-friendly steel production. High US tariffs on steel imports further exacerbate the situation.
Last year, Germany’s crude steel production plummeted to 34.1 million tons, marking the lowest level since the 2009 financial crisis. Thyssenkrupp Steel Europe, a major player, has announced a drastic restructuring plan that involves cutting or outsourcing approximately 11,000 jobs.
Government and EU Measures to Alleviate Crisis
In response to the crisis, the federal government has introduced an industrial electricity price to ease the burden on energy-intensive sectors like steel. Additional support is coming from Brussels, where EU states recently decided to almost halve the duty-free import quota into the European Union. This measure aims to protect the domestic market from global overproduction and cheap competition. Imports exceeding the quota will face a punitive tariff of 50 percent, double the previous rate.
Concerns Over Emissions Trading Revision
However, concerns are mounting regarding the upcoming revision of the European emissions trading scheme, for which the EU Commission is expected to present proposals in July. There is growing pressure from industry and some political factions to soften the EU’s central climate protection instrument to reduce the burden of CO2 certificate trading on businesses.
Anke Rehlinger (SPD), Minister-President of Saarland, expressed fears that such changes could jeopardize the ongoing multi-billion euro transformation of the Saarland steel industry towards “green steel” production. In a letter to Chancellor Friedrich Merz (CDU), she warned against any reversal of political guidelines. “The path of the Saarland steel industry was irreversibly embarked upon in reliance on the commitments of the federal government and the EU Commission,” the letter stated, noting that approvals were granted at record speed and construction had already begun. Rehlinger demanded that the “political goal must remain to maintain CO2 pricing and European emissions trading in ETS 1 in such a way that the transformation of the steel industry is not jeopardized.” This statement follows positions taken by Federal Minister for Economic Affairs Katherina Reiche (CDU).
Parliamentary Support for Rehlinger’s Stance
Rehlinger’s warning has received backing from the SPD parliamentary group. “A full stop, which some desire, does not work and would have fatal consequences for our industrial location,” said parliamentary deputy Esra Limbacher to the “Rheinische Post.” Limbacher emphasized that the modernization of the steel industry is a crucial issue for Germany’s industrial future and that the framework of emissions trading must be preserved, as many companies, including those in Saarland and Salzgitter, rely on it.
Source: https://www.freenet.de/finanzen/nachrichten/krise-der-stahlbranche-tausende-zu-demo-in-berlin-erwartet-40521216.html
