German Chancellor Olaf Scholz has called for stronger EU measures against steel imports, saying he wants to secure the long-term future of Germany’s industry.
“We must protect our companies from being dumped with steel from abroad. That’s why I call on the European Commission to take action: We need greater protection for Europe,” Scholz said in an interview with the Funke media group.
Scholz, who is seeking a second term as chancellor in elections due in February, said he would meet with steel industry representatives on Monday, while Thyssenkrupp AG has threatened layoffs, which he has asked the company to reconsider.
EU countries are facing challenges from Chinese steel and electric vehicle imports that the European Commission says are heavily subsidized.
Asked whether he would support the idea of the German government taking a temporary stake in ThyssenKrupp’s steel unit, Scholz said: “I’m not ruling out any option at the moment.” He cited similar cases, such as the government’s intervention to help Lufthansa AG during the Covid-19 pandemic to help companies weather recessions.
ThyssenKrupp’s steel unit proposed in November to cut 5,000 jobs, with another 6,000 jobs moved out of the company through sales of operations or transferring employees to external service providers. The company has suffered billions of euros in losses due to a global steel glut and high energy prices.
Scholz, a member of the Social Democratic Party, stressed that national measures could be used to ensure a “reliable electricity price” to encourage companies to commit to green steel production.
“Steelmakers are currently investing in carbon-efficient alternatives to conventional furnaces. We are supporting these projects with billions of euros,” he added.
