The German Steel Federation WV Stahl welcomed in principle the signing of the "Coalition Contract" between the coalition partners forming the future government of Germany. The association stresses electricity prices and grid-related fees are the main problem the new government must address.
The coalition of the Conservative Christian Democratic Union Party, the Social Democratic Party SPD and the Green Party presented the agreement last week, indicating the issues it plans to address. Among the promises are lower electricity prices and electricity charges.
This is a step in the right direction, but measures are needed to reduce basic market prices, which are too high in Germany to be internationally competitive. "What we need is a special industry-specific electricity price that we can rely on," the Callanish Federation said in a statement. France and Italy are listed as examples for this.
Another point of the Contract is that the parties intend to continue to promote hydrogen. "We are particularly pleased to be able to use hydrogen in a variety of colors," says Kerstin Maria Rippel, Managing Director of WV Stahl
The coalition also commits to contribute to the continuation of the EU's protective measures, which are necessary given that a third of the steel used in EU production comes from third countries. In this regard, the Federation welcomes the clear indication of the Import Protection Contract through the Carbon Boundary Adjustment Mechanism (CBAM). This should be expanded to a larger value chain, as outlined in the EU Steel and Metals Action Plan, Rippel Notes.
West Virginia Steel also highlights the coalition's decision to consider scrap steel in the treaty to facilitate domestic consumption of this important raw material.
Last but not least, it is dedicated to Germany's special infrastructure fund, which was announced a week earlier. V.V. Stahl warns that the money should be spent with a focus on strengthening domestic industry and that the government needs to move forward in creating leading markets for low-CO2 products.
