Institute of Europe, Russian Academy of Sciences, Moscow, Russia

S. A. Roginko, Head of the Center for Ecology and Development, e-mail: roginko@bk.ru

The article deals with the problems of the German ferrous metallurgy, suffering from sharp increase in costs due to the energy crisis, ill-conceived climate policy and the refusal to use affordable Russian energy resources. The analysis of the leading factors of the decline in the competitiveness of the German ferrous metallurgy, including the dynamics of energy and electricity prices and payments for greenhouse gas emissions. The assessment of the trends of deindustrialization of the industry and the prospects of closing and relocation of enterprises due to the increase in costs and the decline in competitiveness. The article explores the new challengesfacing the  German steel industry, including the high tariffs imposed by the Trump administration on steel imports from the EU, as well as the competition from China. The article also analyzes the first steps taken by the CDU-SPD coalition in Germany to support steel producers, and assesses the potential impact of the EU’s border adjustment mechanism on the industry.

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