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Document shows that German coalition partner wants protection for European steel

A document viewed by us on Saturday revealed that the Social Democrats in Germany, junior partners of Chancellor Friedrich Merz’s coalition, would push for a protectionist approach to Europe’s steel industry and urge the EU adopt a “buy European” strategy.

Next week, the SPD under Finance Minister Lars Klingbeil is expected to adopt these proposals. The SPD calls on the European Commission adopt a "robust" trade protection strategy to protect against foreign competitors who are subsidised.

The SPD stated that "at its core, a tariff-quota system is required to limit excessive import volumes and keep the market open while controlling it."

These proposals will likely feed into the steel summit that the conservative chancellor has called for this month, where steel producers, German States and Trade Unions can discuss proposals to support the industry. It is unclear how far the SPD's proposal will be implemented.

Most German parties were against protectionism in the past, as Germany has been a major beneficiary of low trade barriers for the last 20 years. German regulators and manufacturers are increasingly concerned about the impact of U.S. and Chinese tariffs and competition.

The SPD stated in a document that "we cannot allow the domestic value creation to disappear just because international rules no longer work."

It said: "This isn't about protectionism, but about enforcing rules of fair competition and European strategic interest."

The SPD has also called for stricter controls to be placed on imports of Russian steel and measures to stop it from entering the European market through Turkey.

De-industrialization has eroded the vote share of the SPD, especially in its former industrial heartlands. (Written by Thomas Escritt, edited by Susan Fenton).

(source: Reuters)