The German steel industry is in deep crisis. Merz: Unfortunately, the times of the free market are over

The German steel industry is in a crisis that threatens its existence, said German Chancellor Friedrich Merz on Thursday. Advocating protectionist solutions, he said that the times of the free market were “unfortunately over.”

Merz said these words after the “steel summit” he hosted in Berlin. Apart from the Chancellor, it was attended by, among others: German ministers and representatives of the federal states and the steel industry.

The main topic of the consultations was how to strengthen domestic steel production in a period of global market turmoil. The industry is going through a difficult period, facing new tariffs from the US, growing Chinese competition and weakening demand from the automotive sector.

After the summit, Merz assessed that the steel industry in Germany was in a “crisis that threatens its existence.” – We are not talking here about abstract economic data, but about the fate of a key industry, the fate of employees and their families – noted the head of government.

The Chancellor expressed his belief that the sector needed stronger protection from the state. According to his vision, European steel producers should receive preferential conditions when ordering from the EU. – We must protect our markets and our producers, Merz said, arguing that the days of open markets are “unfortunately over.”

Last month, the European Commission proposed a series of measures to protect the EU's steel industry, including lowering limits on duty-free imports and doubling tariffs to 50%. for imports exceeding these limits. The government in Berlin supports the EC's proposal.

The chairman of the German Steel Association, Gunnar Groebler, also spoke after Thursday's summit. In a statement, he said jobs were at stake. According to his estimates, as many as 5.5 million jobs in Germany will depend directly on the steel industry.

“If we want to ensure social harmony, the industrial foundations of this country must be secured,” Groebler said.

In order to protect the steel sector, the head of the German union called, among others, to introduce stronger protection against price dumping and increase demand for low-emission steel produced in Germany and the EU.

The summit's topics also included the issue of steel imports from Russia to the EU. In accordance with the declarations coming from Berlin, the German government intends to strive to end this import at the Community level as soon as possible. The most involved in the matter is Vice-Chancellor Lars Klingbeil from the SPD, who called for the suspension of imports even before the summit.

From Berlin Mateusz Obremski (PAP)

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