German government officials are advocating for prioritizing domestically produced and European steel in public procurement projects. Lars Klingbeil, Vice Chancellor and Finance Minister, emphasized the need to transition toward climate-friendly steel originating from Europe. Addressing concerns about the future of critical infrastructure projects, he stated that utilizing steel manufactured within the region is paramount, especially given the scale of current investment plans, including a substantial 500 billion euro infrastructure program.
Labor Minister Bärbel Bas echoed this sentiment, asserting the importance of a thriving steel sector for Germany’s industrial base and national security.
A detailed strategy, formally titled “Strengthening Location, Advancing Transformation, Securing Jobs” set to be adopted by the SPD leadership on Monday, explicitly promotes a “Buy European” approach to bolster the domestic steel industry. The strategy cites foreign competition and evolving geopolitical realities as key drivers for this shift. Specific sectors identified as benefiting from this preferential treatment include defense and security, as well as the energy sector.
Beyond procurement practices, the strategy also calls for strengthened trade protections against unfair international trade practices, a focus on lowering energy costs and financial support for the steel industry’s transition towards climate neutrality. Furthermore, it underscores the importance of collective bargaining agreements and increased worker participation within the sector. The German steel industry currently faces significant economic pressures and employees express concerns about job security. The concept of prioritizing domestic steel initially surfaced following discussions between officials, labor representatives and unions.