Angela Merkel’s new strategy on raw materials

Raw materials security, according to the president of the German Federation of Industry (BDI), Jürgen Thumann, at their 2nd Raw Materials Congress in Berlin last month, is “not only secure supply of our economy with oil and gas, but also with metals such as copper, zinc, nickel, and tungsten ores”. Just in time and before the G8 summit, the federal government presented German industry with “a new raw materials strategy”, in the context of the high priority given to “energy security”. The German chancellor herself, Angela Merkel, outlined cornerstones of this strategy at the BDI Raw Materials Congress.

Indeed the new strategy includes compliance with minimum ecological standards and the Extractive Industries Transparency Initiative (EITI), which the chancellor will reinforce at the G8 summit. However, the core objective of the strategy, according to Ms Merkel, is “to support the raw materials initiatives of business abroad”. To do this the federal government will continue to increase the investment guarantees for raw materials investment abroad. Last year alone this guaranty volume abroad rose to €4.1bn—the German government is thus among the “top” worldwide. A second pillar of the strategy is greater support for research and development to promote raw materials productivity.

In order to initiate the new raw materials strategy, the federal government intends to create an inter-ministerial raw materials committee. All possible departments will be able to participate, including those of foreign and security policy. However it should not be hard to guess who will set the agenda. The chancellor told the BDI delegates, “You will now get the forum you asked for”. Meanwhile the critical observer may ask how strong national government backing will still be given to secure raw materials, despite all the talk about globalisation.