Parmelin does not consider the Swiss steel industry to be systemically relevant
Published: Saturday, Mar 16th 2024, 13:40
Updated At: Saturday, Mar 16th 2024, 13:20
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According to Economics Minister Guy Parmelin, the federal government is working flat out to find solutions for the struggling Swiss steel industry. However, Parmelin does not consider this industry to be systemically relevant, as the Federal Councillor said on Saturday on Swiss Radio SRF's "Samstagsrundschau" program.
Parmelin went on to say that the proposals would only be presented once they were ready. It would still take some time. The federal government is in contact with the companies concerned.
"Of course, it would be a difficult moment if this industry were to suddenly fall," continued the Minister of Economic Affairs, Education and Research. But the Swiss steel industry also has its trump cards. For example, it works two to three times as efficiently as the French industry, is very active and is good at processing so-called green steel.
This refers to steel which, thanks to a new type of production method, produces less carbon dioxide than the classic process.
That is important. "We may be able to support new projects," said Parmelin. First of all, his department, the EAER, and Federal Councillor Rösti's Federal Department of Economic Affairs and Energy must finalize the proposals. "Whether we can solve everything: probably not," says Parmelin.
Parliament called for proposals in the fall
The questions to Parmelin came against the backdrop of several members of parliament from various parties having submitted motions on the ailing Swiss steel industry in the last few days. These include calls for transitional financing for this industry, which some of the motions describe as systemically important.
However, the Federal Council had already taken action beforehand because the Swiss parliament adopted a motion by former Solothurn Councillor of States Roberto Zanetti last year. Zanetti and the parliament demanded that the federal government should support the steel and aluminum industry in the face of rising energy prices.
The Federal Council was against the motion. Economics Minister Parmelin said at the time that the proposal would create new dependencies. In addition, energy prices had calmed down again. In addition, other sectors were also affected by the higher prices; the motion would lead to unequal treatment. In any case, the state could not cushion all the advantages and disadvantages of competition.
On Saturday, Parmelin said that there has been overcapacity in the steel industry for years. And steel shows that certain agreements are not respected when vested interests are involved.
As the Federal Council recently stated in an answer to a parliamentary question, it has repeatedly intervened with the EU to demand that the 1972 reciprocal free trade agreement between Switzerland and the EU be adhered to with regard to steel.
Stahl Gerlafingen wants to shut down the line
On Friday, the company Stahl Gerlafingen, based in the canton of Solothurn, announced that it would be shutting down one of its two production lines. The production of so-called wide flat steel in Switzerland is no longer profitable. The reason for this is "unfair" competition for exports to the EU.
In addition, the high energy costs and grid charges in Switzerland would make steel production more expensive. As the EU has imposed quotas on steel imports from third countries in the wake of the trade conflict with the USA, the steel quotas are currently being used almost exclusively by suppliers from third countries such as Brazil, Vietnam and Egypt.
Stahl Gerlafingen is unable to counter their delivery times of just a few hours in some cases. The current situation is therefore tantamount to an export ban to the EU, it continued.
On Thursday, it was announced that Swiss Steel, headquartered in Lucerne, will post a huge loss in 2023 and will have to increase its capital.
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