8 January 2025 – Calls by the German CSU party for a move away from ‘green steel’ are meeting with a cautious response from steel makers there – after all, there is a threat of subsidy losses running into billions. Another scandal in EU market protection proceedings: Safeguard Review about to end prematurely? Also: Strong US labour market data confirms robust economy.
Fear of subsidy losses: No turning away from green steel
At its winter conference this year, the CSU, sister party of the German CDU, set out a ‘move away from green steel’ in a draft resolution. According to the CSU, this should put an end to the ‘aberration of green steel’, as German media are currently reporting.
German steel makers react cautiously
Germany’s two largest steel makers, thyssenkrupp Steel Europe and ArcelorMittal, reacted cautiously to the CSU’s demand. ‘We at thyssenkrupp Steel are convinced that the future must belong to green steel in order to maintain value creation and jobs in Germany,’ a spokeswoman for thyssenkrupp Steel told the Funke Mediengruppe. When asked by the German news channel n-tv, ArcelorMittal explained that the company is in favour of technological openness in the transformation of steel makers to so-called green steel – production with net zero CO2 emissions.
Billions in subsidies are attached to green steel
It is hardly surprising that the major steel makers will continue to officially rely on ‘green steel’ at least until the extensive subsidies, which are paid from the coffers of the European Union and the member states and thus ultimately by the taxpayer, have been paid out for the modernisation of ageing European and German steel production. The German government alone has so far distributed more than 7 billion Euros in subsidies to German steel makers to convert production to ‘green steel’.
And while the EU is happy to call for market protection measures and cry out for subsidies, other countries are condemned for doing so.
Strong US labour market data confirms robust economy
Current US labour market and services data underline the strength of the American economy. The latest JOLTS report reported around 8.1 million job vacancies in November, well above expectations. The ISM services index rose to 54.1 points in December, with all sub-indices above the expansion threshold. These positive signals point to continued growth and healthy economic development.
EU Safeguard Review: Another scandal in the administration of the EU Commission
According to information available to us, the right to good administration (Article 41 – Right to good administration, EU Charter of Fundamental Rights) has once again been violated in an EU market protection procedure. This time in the current EU Safeguard Review, which was initiated on 17 December 2024.
Safeguard Review: Important documents published too late
Important documents that have been available to the Commission since November 2024 were withheld from interested parties until 7 January 2025. According to EU regulations, however, such documents must be brought to the attention of interested parties and made available without delay.
Serious administrative errors in EU market protection procedures before
In 2024, the controversial anti-circumvention proceedings against cold-rolled stainless steel from Indonesia via Taiwan, Turkey and Vietnam had already resulted in serious violations of Article 41 of the EU Charter of Fundamental Rights – particularly affecting small and medium-sized companies that were involved in the proceedings as interested parties.
The responsibility for this new scandal in an EU market protection procedure lies solely with the Commission President. The only response to this renewed failure of the EU market protection watchdogs in such an important procedure can only be to demand the immediate resignation of Ursula von der Leyen as EU Commission President and an immediate end to the ongoing Safeguard procedure!
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