10 December 2025 – Germany’s largest steel producer may be sold to India. However, the foreign investor is already echoing the familiar demands of European steelmakers and wants subsidies to buy into an overprotected market. Political magazine names the most influential person in Europe.
Steel and Subsidies: Is Government Money Always Required?
Germany’s largest steel producer, thyssenkrupp Steel Europe, may be sold to the Indian Jindal Group. The two companies have been negotiating for several months about a potential acquisition. Earlier in November, the socialist German government also expressed a generally positive stance toward a sale to a foreign investor not based in the EU. Several German politicians highlighted, among other things, Jindal’s willingness to invest.
Steel Investment: Not Without Subsidies?
According to German media reports, this “willingness to invest” looks more like the all-too-familiar pattern of European steelmakers: subsidies must be provided so that a foreign investor can buy into an already overprotected market.
Jindal Massively Expands Crude Steel Capacity in India
At the same time, Jindal is significantly expanding its crude steel capacity in India. In the coming years, capacity there is expected to increase by more than 62%. Overall, India plans to expand its crude steel capacity to more than 300 million tonnes per year-much of it through CO2-intensive blast furnaces. These alleged overcapacities have been repeatedly criticised by the German government as well.
Subsidies a “Key Factor” in Jindal’s Strategy
Jindal’s director of European operations even stated to Handelsblatt that subsidies were a key factor in the company’s strategy. And that it “depends” on whether further subsidies can be expected-for example, on how the market for “low-emission steel” develops, including factors such as hydrogen prices, CO₂ emission costs, and customers’ willingness to pay.
European Practices Already Adopted by Foreign Investors
These expectations again underscore that this Indian group has already adapted to the established practices of European steelmakers and is not willing to invest in Europe without taxpayer funds and other benefits. The outcome of such approaches has been reflected recently in the efforts of several EU states: attempting to nationalise a major European steel producer or demanding billions of euros in compensation for investments that were never made.
If investment decisions in Europe once again hinge merely on the amount of subsidies and state aid available, Germany might as well transfer ownership of its largest steel producer directly into national hands.
Politico Names the Most Influential Person in Europe
For readers who share our sense of humour, we would like to draw attention to Politico’s selection of “The most powerful people shaping European politics and policy in the year ahead.”
The magazine named U.S. President Donald Trump as the most influential person in Europe. Someone who may not find that particularly amusing must settle for seventh place: EU Commission President Ursula von der Leyen. She ranks behind Russia’s President Vladimir Putin (5th place) and well behind Denmark’s Prime Minister Mette Frederiksen (2nd place).
We wish all our readers an entertaining Wednesday.
You can find the overview “Ranking the most influential people in Europe” on Politico here >>>
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