Stahl Gerlafingen: Fight for help and criticism of state intervention!

Stahl Gerlafingen: Fight for help and criticism of state intervention!

A panel discussion by the industrial association Inveso took place in Solothurn, where experts discussed the challenges of economic policy. Among the participants were executives from companies such as Fraisa, Stahl Gerlafingen, Agathon and Hess. The discussion focused primarily on the new US tariffs and government support for the industry. Thomas Nägelin, head of Fraisa, was critical of the government aid packages and spoke out in favor of economically liberal approaches. He emphasized that it is problematic when the state intervenes in economic processes and called for restraint in industrial policy.

Councilor of States Franziska Roth (SP) took the view that industrial policy was not fundamentally negative. Your statement points to the need to influence the industry in a targeted and forward-looking manner in order to make it future-oriented. Patrick Puddu from Stahl Gerlafingen described the state aid as temporary relief, but there were numerous conditions attached. In this context, the need to create innovations and good framework conditions for the industry was also highlighted.

State aid and its conditions

In 2024, Parliament approved “bridging aid” specifically for four steel and aluminum producers. This measure came against the background that not a single company has so far applied for support. One of the reasons for this is the strict requirements that are linked to the subsidies. Antonio Beltrame, owner of Stahl Gerlafingen, had previously called for support due to high energy costs. Despite these demands, the Federal Council and the Economics Department rejected requests for additional support, but were heard in parliament.

In December 2024, an aid package was finally passed that provides for a discount on the use of the electricity grid totaling 37 million francs for the years 2025 to 2028. On March 7, 2025, the Federal Council approved the corresponding regulation, which came into force retroactively to January 1, 2025. So far, however, there has been no reaction from companies. Five weeks after the regulation came into force, no application for “bridging aid” was submitted.

Concerns and Challenges

Companies find many of the requirements to be restrictive. This includes, among other things, a ban on dividends and the obligation to create a CO2 reduction roadmap. This leads to concerns that the bonus issue could lead to labor law difficulties. Such uncertainty could explain why even Stahl Gerlafingen has not yet made a decision on an application. It is also noted in industry circles that some politicians may be disappointed if only Stahl Gerlafingen seeks help, which could put Parliament in a bad light.

Alex Naef, the boss of Hess, also highlighted the importance of vocational training and universities for the long-term competitiveness of Swiss industry. Agathon's Michael Merkle supported the need to improve relations with the EU. This is particularly important because Thomas Nägelin sees a framework agreement with the EU as central to Switzerland's economic future.

The discussions surrounding government aid and its implementation show that there is currently a great deal of uncertainty in the industry. While some companies such as Novelis have already decided not to take advantage of the support, developments in the steel and aluminum industries remain exciting and could have far-reaching consequences for economic policy in Switzerland.

For further information about the discussion in Solothurn you can read the reporting Solothurn newspaper as well as the analysis in the NZZ read.