What if the Confederation supported its struggling steel industry? The idea is making headway under the Dome and could benefit from a rare alliance between the Socialist Party and the UDC, against the advice of the Federal Council. Some worry about a breach in liberalism.
Last week, a committee of the Council of States gave the first green light for transitional financing to help companies threatened in the steel sector, such as the Solothurn steelworks of Gerlafingen or the Lucerne group Swiss Steel.
On Tuesday, it was the National Energy and Environment Committee which agreed to come to the aid of the sector. It decided to exempt Swiss companies of “strategic importance” in the production of steel and aluminum from certain taxes on electricity.
>> Read about it: Steelmaker Swiss Steel Group cuts 800 jobs in Switzerland and abroad
This reduction would be limited to 4 years and decreasing from year to year. It would be set at 50% initially and only 12.5% in the final year. Enough to allow businesses to return to normal. Furthermore, it would be addressed only to foundries which produce at least 20,000 tonnes of metal per year, which the commission considers to have strategic importance for the country.
Economic, ecological and strategic interest
In return, the assisted companies must commit to maintaining their production site in Switzerland and making sustainable investments. They must also inform the Confederation of their economic situation and must under no circumstances pay dividends. If these conditions are not respected, they will have to repay the subsidies.
In committee, the proposal was launched by the Vaud socialist Roger Nordmann with the support of the Solothurn UDC Christian Imark. “If we don’t give an immediate signal and if we don’t do something, these factories will be closed before the longer-term measures really start to take effect,” said the latter.
I now expect this company to stop layoffs. We’ll see, but in principle, that’s what they should do
“These sectors are supported throughout Europe. So if we do not take measures, these steelworks will close and never reopen. However, Switzerland needs them ecologically and strategically,” says Roger Nordmann in the 7:30 p.m. “It’s low-carbon steel and we will also use the instruments voted by the people to co-finance investments intended to make these steelworks more competitive,” he explains.
The Vaudois also specifies that if the bill passes, he expects Swiss Steel to renounce the layoffs. “We’ll see, but in principle, that’s what they have to do.”
>> The interview with Roger Nordmann in the 7:30 p.m.:
An “unnatural alliance” against the Federal Council
This seemingly unnatural alliance has borne fruit, supported in particular by centrist elected officials. However, it only narrowly passed the threshold, by 13 votes to 11 and 1 abstention, while the Federal Council is opposed to this support for local industry. The government believes that it does not have sufficient legal room for maneuver and that the money would be better invested in partial unemployment or decarbonization programs for all companies.
This aid is also presented as an ecological measure: “The steel sector, with its recycling capacities, is of capital importance for the circular economy,” underlines the commission in its press release.
>> Read about it: “The Federal Council has exhausted its room for maneuver” to help heavy industry in Switzerland
If it convinces the left and part of the Center and the UDC, other voices on the right fear that this breach in Swiss liberalism will open the way to other interventions, in this sector or in another.
It’s a bit in the DNA of the UDC to support our sovereignty, and therefore also our economy
A minority, however, rejects any support measure. In his eyes, in the long term, it is always advantageous not to pursue a policy in favor of certain branches and companies. In the current situation, it sees no reason to deviate from this principle and doubts that the measure will resolve the structural problems of the companies concerned.
“Isn’t it a great danger that we will find ourselves in a few years at exactly the same point, where these sites will perhaps not be able to be saved?” asks PLR national advisor Christian Wasserfallen.
“Acceptable compromise”
“We do not question the need to have a very liberal economy, but we also take our responsibilities,” replies UDC Nicolas Kolly. “We will not be able to help the entire economy which is in difficulty. But there, we were still talking about companies which produce 20,000 tonnes of metal by recycling, therefore a complete recycling sector in Switzerland.”
Guest in Forum, the Friborg national councilor evokes an “acceptable compromise”. “There is clearly a strategic interest in maintaining these industries in Switzerland and I believe that it is a bit in the DNA of the UDC to support our sovereignty, and therefore also our economy.”
>> Nicolas Kolly’s interview in Forum:
The decision was taken as part of a project to enshrine the electricity reserve in law. This project was approved by 21 votes to 0 with 3 abstentions. It is expected to be examined and debated during the winter session of the Federal Chambers, which begins in December.
Pierre Jordan
