German steel federation WV Stahl has welcomed in principle the signing of the “Coalition Contract” between the coalition partners forming the future German government. The association emphasises power prices and the associated grid fees are the top issue the new government must address.
The coalition of the conservative CDU party, social democrat SPD party, and the Green Party presented the agreement last week, outlining the issues it plans to tackle. Among the pledges is the reduction of power prices and grid fees.
This is a step in the right direction, but measures are needed to tackle basic market prices, which are too high in Germany to be internationally competitive. “What we need is a dedicated industry power price we can rely on,” Kallanish reads in the federation’s statement. It points to France and Italy as the models for this.
Another point of the Contract is that the parties intend to keep pushing the promotion of hydrogen. “We are especially pleased with the openness for a variety of hydrogen colours,” says WV Stahl managing director Kerstin Maria Rippel.
The coalition also pledges to promote the continuation of EU safeguard measures, which are imperative considering that one third of the steel used in the EU comes from third countries. Related to that, the federation hails the Contract’s clear message to protect from imports by means of the Carbon Border Adjustment Mechanism (CBAM). This needs to be widened to the larger value chain, as was worded in the EU’s Steel and Metals Action plan, Rippel notes.
WV Stahl furthermore underlines the coalition’s decision to consider steel scrap in the Contract, to facilitate the domestic supply of this important feedstock.
Last but not least, the statement addresses Germany’s Special Fund for Infrastructure that was announced a week earlier. WV Stahl warns that the money must be spent with a focus on strengthening domestic industry, and that the government needs to push ahead with creating lead markets for CO2-reduced products.
