Statement on Revision of the Guidelines on State Aid for Rescuing and Restructuring Non-financial Undertakings in Difficulty
14 November 2025 | With the revision of the Rescue and Restructuring Aid (R&R) Guidelines underway, the steel industry sets out key messages to support a coherent and competition-friendly EU state aid framework.
In general, the German Steel Association (Wirtschaftsvereinigung Stahl) supports the European Commission’s objective of ensuring that state aid is used only where it is necessary, proportionate and well-targeted. Historical experience from the European Coal and Steel Community (ECSC) demonstrates that extensive state intervention to maintain non-competitive capacities can delay structural adjustments and lead to long-term unintended effects. Against this background, a responsible approach to state aid in the steel sector remains essential.
The structural situation of the German and EU steel sector has significantly evolved. The industry has reduced overcapacity, undergone restructuring, and invested heavily in modern, energy-efficient and low-carbon production processes. However, substantial and growing global overcapacities outside the EU, and the resulting import pressure, are posing existential challenges for the German and EU steel industry.
In addition, the key challenges relate to the long-term transformation of the sector – particularly in terms of decarbonisation, competitiveness, and the security of raw material supply.
Existing EU instruments already provide suitable support to achieve these objectives.
Opening the R&R Guidelines to the steel sector is neither necessary nor beneficial. Such opening could entail risks, including the classification of affected companies as “undertakings in difficulty”, which typically results in the loss of access to other state aid instruments due to the prohibition of double funding. This could unintentionally restrict access to key transformation, innovation and environmental support schemes and thus hinder Green Deal objectives.
In view of the current discussions, the German Steel Association calls for the exclusion of the sector from the R&R Guidelines to be maintained, ensuring that state aid continues to drive socially responsible restructuring, ecological and technological transformation, and long-term competitiveness.
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