Strengthening Germany's sovereignty

Greater resilience in an uncertain world

Our support for the government’s infrastructure package extends beyond its impact our own industry. We are convinced that, on a fundamental level, the German economy must become more resilient. After all, an increasingly bleak wind is blowing around the world. We must brace ourselves against geopolitical tensions, which Federal Chancellor Friedrich Merz and others have identified as an epochal watershed. 

This is why we need functioning infrastructure. It is why we need a strong industrial sector. And why we need steel. The infrastructure package cannot be realized without steel. We need it for buildings, transport, energy infrastructure and, increasingly, as a crucial material for the arms industry to boost our defense capabilities.

Essential for Germany’s prosperity

The modern world and social prosperity as we know it are inconceivable without steel. We are critical to the success of many sectors. Steel-intensive goods account for two-thirds of German exports, while half of the production value generated by industrial SMEs in Germany depends directly on steel. Roughly four million people in Germany work in steel-intensive sectors, with around 80,000 employed in the steel industry itself. Steel is the first link in almost every value-creation chain and lends weight to German industry.

With this in mind, we cannot afford to be indifferent about where we source the steel we need for these challenging tasks. The loss of domestic steel production would surrender another important part of our sovereignty. As steel producers, we underpin our country’s industrial foundations. We ensure a reliable supply of this fundamental construction material to our key industries. In an unstable world, we lend weight and strength to security. 

Steel underlines and fortifies the entire system

The political sphere has realized the steel industry’s wider systemic significance. It is aware of the dramatic position of steel – and responded accordingly. At the European level, there is the Carbon Border Adjustment Mechanism (CBAM) in place and a far-reaching proposal from the European Commission on foreign trade protections. The German Public Procurement Acceleration Act, which is expected to be passed in the near future, will empower the federal government to define requirements for climate-compatible products in public contracts. This would be a major step towards leading markets and support the scaling of green products. 

Unfortunately, the industrial electricity price mechanism is structured in a way that prevents pragmatic use by energy-intensive industry. In its current form, and with a maximum three-year term, it does not deliver the relief the steel industry needs. The debate on the EU Emissions Trading System (ETS) will continue to shape this year, as a comprehensive review is due in summer 2026. This review will define the ETS structure from 2030 onwards. 

We acknowledge the intention; policymakers want to support the steel industry. But we also know that this assurance can unravel at any time in the course of budgetary maneuvering. 

Expanding our ability to take action

In light of the above, we cannot afford to rest on our laurels. We must develop strategic flexibility if we are to strengthen our ability to act. Germany as a location needs steel production and steel processing. We supply entire industrial process chains through our considered management of raw materials, efficient production processes and responsible recycling. We are investing in Europe’s green future because we are convinced that this transformation is both environmentally imperative and economically responsible. Nevertheless, we must now create competitive framework conditions to help the industry survive this vulnerable transitional phase through to climate neutrality, thereby ensuring that the €500 billion allocated to infrastructure and climate neutrality represents a sound investment.

Yet, away from regulatory affairs and policymaking, we know that we, too, have work to do. Our profit improvement program will enhance our ability to perform. By embracing digitalization and artificial intelligence, we are leveraging cut-cutting potential, simplifying processes – and becoming more profitable overall. We are summoning the strength to retain jobs and keep value creation in Europe and in Germany. 

Expertise and experience alone are not enough

If we hope to develop strategic flexibility, we cannot simply rely on our experience and proven expertise. Instead, we need an entire set of qualities to drive our transformation forward as a prerequisite for long-lasting resilience, competitiveness and future viability. This will enable us to set a positive example for our industry and for all of Germany:

Our eyes are fixed on the clearly defined objectives in front of us: progress, profitability and competitiveness. These are indispensable qualities for Germany to be a resilient, sovereign and, as a result, competitive location. Our future as an industrial nation is on the line. Germany needs brave and resolute decisions to revive the economy and clear the investment backlog. The Special Fund for Infrastructure and Climate Neutrality provides cause for optimism.

So, as the snow thaws, I would like to herald the start of spring with the notion that this can be the year in which we prove that climate neutrality and industrial strength are, in fact, compatible.