Klingbeil and Reiche Promise Industrial Power Price - German Government Unveils Steel Industry Aid with Cheaper Power Prices
The German government has unveiled aid measures to rescue the struggling steel industry. Finance Minister Lars Klingbeil (SPD) and Economics Minister Katherina Reiche (CDU) have proposed a state-subsidized, cheaper industrial power price, with the coalition committed to its implementation. The goal is to help the industry, currently in a severe crisis.
The cheaper industrial power price requires EU Commission approval, with negotiations expected to conclude by the end of the year. Klingbeil described the project as crucial, with funds coming from the federal government's Climate and Transformation Fund. The German federal government plans to implement this price specifically to support the steel sector in crisis, retroactively starting from January 1, 2025, aligning with the 2025 federal budget law.
Klingbeil, Reiche, and Labor Minister Barbel Bas (SPD) met with works councils and trade unions to prepare for the 'Steel Summit' announced by Chancellor Friedrich Merz (CDU) in the fall. Companies are expected to learn about the industrial power price by the beginning of 2026, with reimbursement planned for the 2027 budget.
The German government's aid measures aim to revitalize the steel industry by providing a cheaper industrial power price. With EU approval expected by the end of the year and implementation starting in 2025, the industry can look forward to much-needed support. Companies will be informed by 2026, with reimbursement planned for 2027.
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