German Steel Production at a Crossroads, as Government Urged to Intervene
The German steel industry is facing a crisis, with the recent announcement by ArcelorMittal Europe that it will not transition to a climate-friendly production method using green hydrogen instead of coal, despite receiving billion-euro subsidies from taxpayers. The company’s decision has sparked concerns about the sector’s future, with the Social Democratic Party’s (SPD) parliamentary group leader, Matthias Miersch, calling for the government to take immediate action.
Miersch emphasized the importance of the steel industry in the German economy, stating that the production of green steel in the country is crucial for the country’s transformation. “We cannot afford to let entire industrial sectors simply disappear” he said, addressing Economy Minister Katherina Reiche (CDU). “The economy minister must now convene a steel summit.”
The SPD politician stressed the need for the government to take a proactive role in supporting the industry, citing the need to protect jobs and ensure the country’s economic resilience. “We must ask ourselves whether it is wise to make ourselves dependent on China and others in such an area” Miersch said, highlighting the importance of self-sufficiency in the face of global challenges.
Miersch also called for a dialogue between all parties involved, including the government, industry and labor unions, to identify the necessary framework conditions for the sector’s survival. “We need to bring all the players to the table and then figure out where we can improve the conditions and where the government needs to take action” he said, placing the responsibility on Reiche’s shoulders.