Federal Council does not want to subsidize steel industry
Published: Wednesday, May 22nd 2024, 14:20
Back to Live Feed
To support the Swiss steel industry, the Federal Council is relying on existing energy and climate policy measures - and those that will be introduced from 2025. However, it does not want to get involved in a subsidy race with other countries.
On Wednesday, the national government discussed the implementation of a motion by former Solothurn SP Councillor of States Roberto Zanetti that had been adopted by Parliament. This motion calls for the cushioning of any market imbalances that have arisen in the steel and aluminum industry as a result of measures in the EU.
Economics Minister Guy Parmelin presented the results of the discussion at a media conference in Bern. According to his press release, the Federal Council intends to campaign against market distortion and protectionist measures at international level. On the other hand, the new CO2 Act and the Climate Protection Act make it possible to support these companies in their decarbonization efforts with investment contributions.
In its communiqué, the Federal Council also pointed out that energy prices have fallen significantly again for a good year and that there are also signs of an easing in grid costs.
Job cuts at Stahl Gerlafingen
The state government wants to examine whether certain large-scale consumers should be exempt from the surcharge for the electricity reserve. In return, the companies would have to agree to reduce or shut down their operations in the event of an electricity shortage.
The Swiss steel industry has recently been under pressure - partly, but not exclusively, due to high energy prices. Steel manufacturer Stahl Gerlafingen in the canton of Solothurn is closing one of its two production lines at the end of May, cutting 95 jobs and laying off 68 employees.
In a statement issued at the end of April, Stahl Gerlafingen blamed the measures on the "de facto EU import ban on Swiss steel in place since mid-2023". In addition, the "massive distortions of competition due to EU industry support measures" had severely affected the plant's sales and margins in Switzerland.
©Keystone/SDA
English 
German 
French 
Spanish 
Arabic