Swiss Steel Industry Relies On Subsidies: Job Cuts

Swiss Steel Industry Relies On Subsidies: Job Cuts

Thu, May 23rd 2024

Federal council supports Swiss steel industry with current and future measures, for now.

KEYSTONE/Michael Buholzer

The Swiss steel industry is relying on, the federal council for upcoming energy and climate policies.

On Wednesday, the government discussed a motion by former Solothurn SP Councillor Roberto Zanetti, adopted by parliament, which seeks to address market imbalances in the steel and aluminum industries caused by EU measures.

Economics Minister Guy Parmelin shared the discussion results at a media conference in Bern. The federal council aims to combat market distortion and protectionism internationally. The new CO2 Act and Climate Protection Act will help these companies decarbonise through investment contributions.

The federal council also noted a significant drop in energy prices and potential easing of grid costs.

The government will consider exempting large-scale consumers from the electricity reserve surcharge if they agree to reduce operations during shortages.

The Swiss steel industry faces pressure from high energy prices. Stahl Gerlafingen in Solothurn will close one of its production lines in May, cutting 95 jobs. The company cited the “de facto EU import ban on Swiss steel since mid-2023” and “massive distortions of competition due to EU industry support measures” as reasons for the cuts.


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