A German state’s party explores state involvement in steel companies, citing the need for a strategic stake in the face of significant funding.
In a recent interview with POLITICO, Sarah Philipp, co-leader of the North Rhine-Westphalia (NRW) Social Democratic Party (SPD), emphasized the importance of state involvement in steel companies. Philipp argued that, in the context of a substantial state subsidy, it is reasonable to consider a temporary state entry or strategic stake in steel companies.
The NRW government has provided 700 million euros in funding to support Thyssenkrupp’s transformation, the highest single-state funding in the region’s history, Philipp noted. She criticized the state’s lack of involvement in the company, questioning why the SPD, which supports the funding, does not demand a seat on the supervisory board.
Philipp also expressed concerns about the potential impact of the funding on the company’s workforce. “If two billion euros in funding are allocated to Thyssenkrupp, it cannot be the case that, just a few weeks later, 11,000 jobs in Duisburg are at risk” she said. According to Philipp, any funding decision should guarantee job security, a guarantee of the company’s location, employee participation and social partnership.
The steel crisis is expected to be a key topic at the SPD’s party conference in Berlin this weekend, with Philipp calling for an “immediate steel summit.” The party leader will likely reiterate the need for state involvement in the steel industry to ensure the long-term survival of the sector.