Reiche seeks to support chemical industry – talks with Brussels continue

German Economy Minister Catrina Reiche is pushing to ease the burden on the country’s chemical industry and is relying on negotiations with the European Commission to achieve this. Plans include combining an industrial electricity price with electricity cost compensation to reduce high energy expenses. However, the EU Commission prohibits double funding, meaning Brussels must approve both measures under state aid law.

The chemical sector is struggling with soaring energy prices and weak demand, with plants currently operating at about 70 percent of capacity. Short-term relief is considered crucial to secure investments and jobs. At the same time, Reiche aims to work with the industry to develop the “Chemistry Agenda 2045” to strengthen Germany’s position in the long term. The final paper is expected in early 2026.

Speaking at an opening event in Berlin, Reiche stressed that Germany’s importance as a chemical industry hub should not be underestimated. “Without innovative chemistry, there would be no powerful batteries, no efficient solar systems, no vaccines, no climate-friendly plastics, and no clean production processes.”

Sources - Agencies