A deepening rift is emerging within Germany’s governing coalition as debates intensify ahead of a crucial summit hosted by CDU leader Friedrich Merz, focused on the future of the German steel industry. Saarland’s Minister President Anke Rehlinger (SPD) has publicly demanded a sharply reduced industrial electricity price of just five cents per kilowatt-hour, arguing it is essential to maintain international competitiveness and safeguard the region’s vital steel sector. Rehlinger’s plea, articulated in an interview with “Süddeutsche Zeitung”, underscores the precariousness faced by the industry, where approximately 12,000 direct and 20,000 indirect jobs depend on its continued viability.
The current coalition plan proposes a discounted electricity rate applying to just 50% of industrial energy needs, slated to take effect in January 2026. However, this falls short of Rehlinger’s call and the even more ambitious proposal put forward by Green Party parliamentarians. A paper drafted by Green Party figures, including parliamentary group deputy leader Andreas Audretsch and economic policy spokesperson Sandra Detzer, advocates for a five-cent rate applicable to two-thirds of industrial consumption. Crucially, this bolder proposition is contingent on companies providing firm commitments to maintain local operations and undergo a rapid, climate-friendly transformation.
This divergence highlights the internal struggle within the Green Party itself, which has historically been divided on the merits of industrial electricity pricing. While proponents argue it’s a necessary intervention to prevent further decline in a strategically important sector, critics voice concerns that drastically reduced energy costs could stifle innovation and incentivize higher carbon emissions by diminishing the impetus for energy efficiency. The Green Party’s sudden urgency to push forward with the proposal, as reported by “Süddeutsche Zeitung”, may be a calculated move to counter growing public criticism directed towards the party’s energy transition policies and the burden of high electricity prices on households and industry.
Beyond purely economic considerations, the debate is increasingly framed within a context of national security and strategic autonomy. Detzer emphasized the imperative to avoid complete reliance on foreign sources for essential materials like steel, implicitly criticizing Germany’s vulnerability to global supply chain disruptions and geopolitical instability. While acknowledging that ongoing subsidies are not a sustainable long-term solution, the core argument centers on preserving a foundational industry crucial for Germany’s industrial base and national resilience. The summit and subsequent negotiations promise to be tense, as competing interests and ideological positions collide over the future of German steel and its place within a rapidly changing global landscape.