European steel industry calls for urgent EU Action Plan to ensure competitiveness

As Commissioner-Designate Stéphane Séjourné prepares for a hearing in the European Parliament, key stakeholders in the European steel industry, supported by cross-party Members of the European Parliament (MEPs), are urging the implementation of an EU Steel Action Plan. The goal is to strengthen the sector’s competitiveness, support its green transition, and protect thousands of jobs across Europe.

Amid ongoing political changes in both Europe and the United States, European steel social partners emphasize the urgent need for decisive EU measures. They highlight the sector’s struggle to remain competitive in the global market while undergoing the transition to green steel production. The European steel industry currently faces significant challenges, including record-high global overcapacity and uncompetitive energy and raw material costs. These issues threaten over 300,000 direct jobs and 2.3 million indirect jobs.

In response, IndustriAll Europe and the European Steel Association (EUROFER) have presented a set of proposals to the European Commission and EU Member States, which have gained cross-party support from MEPs. They stress that immediate and effective measures are needed to stabilize the industry and support ongoing decarbonization efforts.

During today’s parliamentary session, MEPs will question Commissioner-Designate Séjourné, who has been instructed by Commission President Ursula von der Leyen to develop an EU Steel and Basic Metals Action Plan. The social partners insist on the plan’s publication within the first 100 days of the new Commission.

Judith Kirton-Darling, General Secretary of industriAll Europe, commented on the urgency of the situation: “The European steel sector is facing a crisis, with daily reports of production cuts, closures, and bankruptcies. We are committed to protecting these skilled and high-quality jobs. We cannot allow European steel sites to shut down, only for the market to be flooded with lower-standard steel imports that ignore environmental and social norms. Decarbonization must not equate to deindustrialization. We need the EU to ensure a fair and sustainable future for steel in Europe.”

Axel Eggert, Director General of EUROFER, added: “Steel is essential to Europe’s manufacturing base and critical to clean technology value chains, from renewables to electric vehicles. The industry’s future is linked to Europe’s prosperity and economic resilience. Our investments in decarbonization are at stake, as we face energy costs much higher than those of our global competitors. A robust EU Steel Action Plan is necessary, incorporating trade, energy, and market support measures to ensure the sector’s sustainability. In light of the recent U.S. elections, we also urge continued EU-U.S. cooperation to address global challenges like steel overcapacity and unfair trade practices.”

IndustriAll Europe and EUROFER have outlined several key actions for the European Commission and Member States, including:

1. Strengthening EU trade policy to bolster industrial resilience, enforce trade defense instruments, and establish a robust tariff regime to address global steel overcapacity.
2. Monitoring and reinforcing the Carbon Border Adjustment Mechanism (CBAM) to prevent circumvention and resource shifting.
3. Adopting measures to transfer the cost benefits of renewable and low-carbon electricity to consumers.
4. Implementing policies to create lead markets for green steel produced in Europe.
5. Increasing financial support for green steel transition investments.
6. Ensuring access to critical raw materials, such as steel scrap, for production.
7. Supporting robust social policies to maintain quality industrial jobs, including an EU Directive on Just Transition.

The industry emphasizes the urgency of these actions to secure the future of European steel production and employment.

Source: Eurofer, Photo: Fotolia