The federal states of North Rhine-Westphalia, Lower Saxony, Bremen, Saxony, and Saarland have issued a comprehensive list of demands to the federal government, one day before the steel summit at the Chancellery.

In their joint statement, the five state premiers insist on the introduction of an EU tariff quota for steel imports. "Outside of these quotas, an effective punitive tariff should be implemented: at least 50 percent, mirroring the US level. The instrument should target all products within the steel value chain, including both primary and further processed goods," the leaders wrote. Additionally, they call for a ban on imports of steel and steel products from Russia into the EU.

Federal Chancellor Friedrich Merz emphasized that Germany needs a "competitive, future-proof, modern" steel industry. "This is in Germany's strategic interest," he wrote on the X platform. "It secures jobs and value chains. It secures our country's prosperity." This, he added, is the focus of the steel dialogue, at which Merz will host companies, five federal ministers, trade unions, and state representatives on Thursday.

The trigger for these demands lies in the economic difficulties of a sector marked by overcapacity. In the West, European steel companies are struggling with US import tariffs of 50 percent. In the East, China has built up significant overcapacity and is pushing its steel onto the European market. Politicians from the CDU and SPD have criticized dumping prices aimed at eliminating European competition.

To protect the struggling sector from unfair international competition, the five state governments are also calling for stricter EU CO 2 border tariffs on imports from countries without comparable environmental standards. The so-called CBAM protection should be extended to downstream steel-intensive products and should allow for the exemption of exports from CO 2 costs. If this is not feasible, the federal government should ensure that domestic steel producers continue to receive free CO 2 certificates. Companies should also benefit from both a low industrial electricity price and electricity price compensation.

(Reporting by Andreas Rinke, additional reporting by Ilona Wissenbach, edited by Christian Rüttger)