Policy proposals under discussion include extending electricity price compensation beyond 2030, introducing an industrial electricity price from January 2026, reducing network charges, while noting EU limits on dual subsidies.

Germany is hosting a steel summit at the Chancellery, chaired by the chancellor, to address mounting pressures on the sector from high costs, climate transition needs, and cheap imports, with a focus on finding solutions.

Steel is central to German industry, supporting automotive, construction, and machine building, employing about 80,000 directly and involved in the production of 2,500 steel grades; in 2024 Germany produced 37.2 million tons of crude steel, accounting for more than a quarter of EU output.

Industry voices in Niedersachsen praise the push for a lower industrial electricity price in Brussels but call for careful assessment of the scale and pace of the green transition on competitiveness.

Finance Minister Lars Klingbeil warned the debate should protect domestic industry without becoming rule-based protectionism, while acknowledging ongoing risks.

A core aim of the summit is to yield concrete decisions rather than mere announcements, though officials caution it may serve as a prep step for further action rather than binding conclusions.

Source attribution for the coverage comes from Till Bücker of ARD Finance Desk.

Lies emphasized open discussions and urged a coordinated approach among federal and state governments, industry, and unions to translate proposals into EU-wide actions.

Merz stated he would push the proposals in Brussels and called for appropriate regulations to safeguard the sector.

Decarbonization options discussed include direct reduced iron with hydrogen, transitional use of natural gas in new plants, greater use of wind and solar to electrify furnaces, and broader CO2 reduction measures, alongside expanding industrial electricity supply and potential EU policy changes.

IG Metall and business groups are pushing for the five-cent industrial electricity price from January 2026 and for fair trade relations and competitive energy costs.

Industry leaders and unions warn that clear political signals and investment security are essential to green steel, urging continued policy alignment from the highest levels of government.