Berlin's Steel Dilemma: State Intervention on the Horizon?

German Chancellor Olaf Scholz is considering a potential government stake in Thyssenkrupp's steel business amid challenges such as high energy costs, competition, and decarbonization. Temporary state investments are intended to stabilize struggling companies. The government has previously supported firms like Lufthansa and Meyer shipyards in tough times.

German Chancellor Olaf Scholz has indicated that the government may consider taking a stake in Thyssenkrupp's steel business. Speaking to Funke Media Group, Scholz stated that no options have been excluded, reflecting Berlin's readiness to support struggling companies through temporary investments.

Scholz emphasized that such interventions are designed to help firms endure challenging periods, a strategy previously applied to companies like Lufthansa and Meyer shipyards. The German leader plans to convene with key figures from the nation's steel industry to address pressing issues like soaring energy costs and competition from Asia.

Notably, Thyssenkrupp has been negotiating the sale of additional stakes in its steel sector, recent transactions involving Czech billionaire Daniel Kretinsky. The move comes amid broader concerns over the slow-paced shift to decarbonization within the industry.

(With inputs from agencies.)