Schweitzer demands more engagement from Merz for chemical dialogue - Germany's chemical industry crisis sparks clash over delayed federal support
Rhineland-Palatinate's Minister-President Alexander Schweitzer has urged Chancellor Friedrich Merz to take stronger action in supporting Germany's struggling chemical industry. In a sharply worded letter, Schweitzer criticised delays in key policies, arguing that businesses and commuters have already paid a steep price for government inaction.
Schweitzer's frustration centres on the slow progress of the Chemie-Dialog initiative, a coalition pledge to make Germany Europe's leading hub for chemistry, pharmaceuticals, and biotechnology. Despite earlier promises, he claims little has been achieved, particularly on industrial electricity pricing—an issue where federal consensus was supposedly reached long ago.
The minister also attacked Economics Minister Katherina Reiche for her delayed response to soaring fuel prices, which he said had left commuters and small businesses facing 'outrageously high costs.' Meanwhile, industry leaders have warned of severe supply chain disruptions from the Iran conflict and skyrocketing raw material costs, hitting the construction materials sector hard. Recent data shows some relief in industrial electricity prices, dropping from 35.8 ct/kWh in February 2025 to an average of 25.7 ct/kWh by March 2026. For energy-intensive firms, the government has now introduced a subsidised rate of 5 ct/kWh for up to 50% of annual consumption (over 1 million kWh) between 2026 and 2028. An additional 2 ct/kWh tax refund further reduces costs to 0.05 ct/kWh for producing industries.
The new electricity subsidies aim to ease financial pressure on key sectors. However, Schweitzer's letter signals growing impatience with federal delays. Without faster action, he warns, Germany's chemical and industrial competitiveness could face further setbacks.
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