SPD floats partial nationalisation as last resort to save Germany’s steel industry
Handelsblatt / Table Media
Germany’s Social Democrats (SPD) propose taking stakes in struggling steel companies as a last-resort measure to rescue the crisis-ridden industry and enable climate-neutral production, business daily Handelsblatt reports.
“In order to secure domestic capacity, avoid strategic dependencies and enable investment in climate-neutral production processes, state entry into German steel production must be an option in justified individual exceptional cases,” states a position paper by the party’s parliamentary group, which is due for adoption on Tuesday and was published by Table.Media.
Germany’s steel industry is under pressure due to trade conflicts, overcapacity and international competition, and points to challenges arising from high energy prices and subsidised imports. Chancellor Friedrich Merz from the conservative Christian Democrats (CDU), who leads a coalition government with the SPD, has announced a “steel summit” with company and union representatives to discuss the sector’s problems, though no date has been announced.
The SPD position paper’s “core demands” to safeguard the industry include protection against unfairly priced imports, support for low-carbon steel production, use of public procurement as a lever for promoting green steel, and nationalisation only as a last resort.
The paper argues that while a public stake should remain a fallback option, more immediate tools such as energy cost relief, tax incentives, and preferential procurement rules must come first. The party also proposes adopting a “Buy European” approach in public contracts.
“We must not jeopardise domestic, well-paid jobs by becoming dependent on heavily subsidised foreign steel,” SPD economic policy spokesperson Sebastian Roloff told Handelsblatt.
“In the long term, a steel foundation could provide a sustainable structure that operates independently of the market, supports strategic investments and helps companies transition to climate-neutral production,” the paper adds.
Germany’s ambitions to decarbonise steelmaking and use green hydrogen to help clean up industry suffered a setback after steelmaker ArcelorMittal cancelled plans to convert two plants to climate-friendly production, citing high energy costs and turning down 1.3 billion euros in subsidies.
