German steelworkers protest despite billions in aid

Thousands of steelworkers are set to protest in Germany, organized by the IG Metall union, despite substantial financial aid from both the federal government and the European Union aimed at supporting the crisis-ridden sector. This demonstration highlights ongoing dissatisfaction within the industry.

Politicians have made considerable efforts to assist the steel sector. Chancellor Friedrich Merz met with industry representatives, and the government is investing billions of euros to facilitate the transition from climate-damaging blast furnaces to new facilities. Additionally, the EU will significantly limit duty-free steel imports from outside the bloc starting in July.

Jürgen Kerner, the second chairman of IG Metall, acknowledged these efforts, stating, "The glass is half full," and that the union has achieved some successes. However, he outlined four key reasons for the workers' planned demonstration. One major concern is the subsidized industrial electricity price, intended to benefit companies for at least three years. Kerner argues this subsidy is "homeopathic" and too short-lived, particularly for electric steelworks that rely heavily on electricity for recycling scrap metal.

Another grievance is the continued import of steel from Russia into the EU, which Kerner finds "unacceptable" and difficult to explain to steelworkers. Germany produced over 34 million tons of steel last year, a significant drop from pre-2019 levels, leading to low factory utilization. The union also advocates for combining the industrial electricity price with other subsidies, like the Strompreiskompensation, which compensates energy-intensive companies for the costs of emissions trading. This would require an additional billion euros from the federal budget, which Kerner urges the government to secure.