Germany's Thyssenkrupp says Europe must match U.S. climate package
Reuters
Published Jan 30, 2023 15:16
FRANKFURT (Reuters) - German conglomerate Thyssenkrupp (ETR:TKAG) on Monday joined peers in saying that European industry was under threat should the continent fail to come up with a scheme similar to the U.S. climate package to boost local companies.
"The common task of policymakers, business and society must ... be to ensure that the green transformation succeeds without deindustrialization," Chief Executive Martina Merz said in a prepared speech published ahead of the group's annual general meeting on Friday.
She said that was particularly the case for Germany with its industrial base, including steel, cement and chemicals makers, that have all suffered from higher energy costs, driving inflation at a time when they need to decarbonise production.
That has stoked fears of European companies shutting or moving production to regions where costs are lower, compounded by the $430 billion U.S. Inflation Reduction Act (IRA) to support clean technologies via tax credits.
The European Union responded this month saying it will prepare a law to make life easier for its green industry and back it up with state aid and a sovereignty fund to keep firms from moving to the United States.
"That's good, because tomorrow's markets are being carved up now," Merz said, adding that a planned spin-off of Thyssenkrupp's steel division still required more clarity in terms of subsidies as well as energy and raw materials prices.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.