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Merz Hosts Steel Summit as Germany Weighs Power Relief and EU Import Curbs

Berlin is nearing a subsidized industrial power rate starting in 2026.

Overview

  • The chancellor is meeting ministers, state leaders, companies and unions to agree steps to keep steelmaking and related jobs in Germany.
  • Economics Minister Katherina Reiche signaled an industrial electricity price of about €0.05 per kWh from January 1, 2026 for roughly 2,000 energy‑intensive firms, with EU approval talks described as close to completion.
  • The European Commission has proposed cutting quota‑free steel imports to 18.3 million tonnes a year and imposing a 50% tariff above that level, while six German states urge backing for at least a 50% duty and the federal government has not yet committed.
  • Industry leaders push for tougher trade protection and procurement that favors EU steel, as automakers warn broad import curbs could raise costs and invite countermeasures.
  • Analysts say temporary energy relief will not suffice without funded plans for green steel and hydrogen infrastructure, noting German crude steel output fell nearly 12% in the first half of 2025.