The days of open markets and fair competition are "over," and now it is necessary to give preference to domestic producers, German Chancellor Friedrich Merz said decisively last week.
The key topic of discussion in recent weeks has been the idea of introducing a "Buy European steel" mandate for steel purchases in the EU.
Speaking at the German Chancellor's Office in Berlin on Thursday after a "steel dialogue" attended by representatives of various industries, Merz said: "We have been asked to ensure that European and German steel are preferred in steel purchases. Yes, I agree."
"This is somewhat different from what we always thought was right in the past, when we had open markets, fair competition and, of course, not tariffs like those currently charged in America. Unfortunately, those times are over, and that's why we have to protect our markets, why we have to protect our producers, and why we also have to give our producers appropriate preferences when it comes to using steel in Germany and Europe," he continued.
Merz further thanked Deutsche Bahn for agreeing to purchase low-emission rails. The railway network operator has launched a pilot rail procurement project at the French railway division Saarstahl, and the first 1,000 tons have been delivered.
"This is the path we want to follow together," Merz commented.
The Chancellor also stressed the "human and emotional perspective" of the dialogue on steel. "We are not talking about abstract economic indicators here, but about the fate of a key industry. We are talking about the fate of entrepreneurs, workers and their families, who expect and hope that politicians will commit themselves to saving these jobs and that German steel will be protected," he concluded.
During the dialogue, the importance of competitive energy prices was emphasized (see Kallanish passim). The German government has said it plans to offset electricity prices in order to provide additional assistance to the steel industry through increased aid. He also wants to lift the exemptions from sanctions on imports of semi-finished steel products from Russia. He supports efforts to negotiate a quota agreement with the United States, advocates extending the CBAM program to steel processing, and calls for the payment of export compensations in accordance with WTO requirements.
Adam Smith Austria
kallanish.com
