Germany Rushes to Save Struggling Steel Industry with EU-Backed Aid
The German government is rushing to aid the struggling steel industry, with Finance Minister Lars Klingbeil (SPD) and Economics Minister Katherina Reiche (CDU) working together to secure concrete support. The key measure is a state-subsidized lower industrial electricity price, which requires EU Commission approval. Companies must be aware of the new electricity price by early 2026.
The steel industry is grappling with a severe crisis, facing challenges from customer industry troubles, soaring energy prices, cheap imports, and transition costs. Thousands of jobs are at risk, putting significant pressure on the sector. The federal government aims to stabilize the industry by acting swiftly and decisively.
Klingbeil proposed protecting the EU steel industry from cheap imports and promoting domestic steel use in investments. Meanwhile, Reiche is negotiating with the EU Commission to finalize the aid package by the end of the year. The EU Commission allows direct state subsidies under specific conditions, ensuring compatibility with EU state aid rules and providing planning security. Reimbursement is planned for the 2027 budget, supporting competitiveness without distorting the internal market.
The German government is committed to helping the steel industry navigate its current challenges. By securing EU Commission approval for state subsidies, the government aims to lower industrial electricity prices, providing much-needed relief and planning security for the sector. Companies can expect to know the new electricity price by early 2026, with reimbursement planned for the following year.
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