German government officials are advocating for prioritizing domestically produced and European steel in public procurement projects. Lars Klingbeil, Vice Chancellor and Finance Minister, emphasized the need to transition towards climate-friendly steel originating from Europe, particularly within crucial infrastructure developments supported by the nation’s significant investment package. He articulated a vision where the use of locally produced steel becomes standard practice.
Bärbel Bas, Minister for Labour, underscored the importance of a thriving domestic steel industry, characterizing it as vital to Germany’s industrial base and a matter of national security.
A detailed strategy, titled “Strengthening Location, Driving Transformation, Securing Jobs” slated for approval by the SPD leadership on Monday, outlines support for a “Buy European” approach designed to bolster the steel sector. The strategy explicitly addresses concerns stemming from foreign competition and the current geopolitical landscape. Key sectors identified for emphasizing European steel usage include the security and defense industries and the energy sector.
Beyond procurement preferences, the proposal calls for robust trade protection measures to counter unfair trade practices, reduced energy prices, financial assistance to facilitate the climate-neutral transformation of the steel industry and increased collective bargaining rights and employee co-determination. The German steel industry faces considerable pressure, prompting concerns among employees regarding job security. The initiative initially surfaced following discussions between government representatives, steel workers’ councils and trade unions.
