Italy-France: Ministers Urso and Ferracci discuss joint action on CBAM

Discussions on crucial European industrial policy took place in Paris last week, as Italian Minister for Enterprises and Made in Italy, Adolfo Urso, met with French Minister of Industry, Marc Ferracci. The talks focused on the need to address challenges in the steel and automotive sectors, with particular emphasis on revising the EU’s Carbon Border Adjustment Mechanism (CBAM).

CBAM Revision Dominates the Agenda

A key topic of the meeting was the urgent need to revisit the CBAM framework. Urso and Ferracci voiced concerns about its current structure, which they believe could jeopardize the competitiveness of Europe’s steel industry. The ministers highlighted the importance of ensuring that CBAM supports sustainability while safeguarding industrial capacity and jobs in this critical sector.

Urso remarked, “CBAM must not become an obstacle to the competitiveness of European steelmakers. Revising the mechanism is essential to achieve a balance between environmental goals and the resilience of Europe’s strategic industries.”

Ferracci echoed this sentiment, underlining the need for a solution that allows European producers to compete effectively in global markets while advancing decarbonization efforts.

Strengthening Strategic Industries

The steel industry, considered a linchpin of Europe’s industrial base, was at the heart of the discussions. The ministers agreed to work closely on policy measures that support sustainable growth in the sector while ensuring economic and industrial competitiveness. The establishment of a bilateral technical working group was proposed to develop coordinated strategies for presentation to European institutions.

Challenges in the Automotive Sector

The talks also addressed the automotive sector, which faces significant production and employment challenges. Both ministers stressed the need for coordinated efforts to stimulate demand and strengthen supply chains, with particular attention to component manufacturers.

Urso emphasized that revitalizing the automotive sector is essential for Europe’s industrial future, stating, “Italy and France must lead efforts to safeguard the industries that are the backbone of Europe’s economy, ensuring their sustainability and competitiveness.”

Multilateral Engagement

The meeting took place alongside the Trilateral Business Forum between France, Italy, and Germany. Minister Urso, joined by Emanuele Orsini, President of Confindustria, also held bilateral discussions with French Minister of Economy Antoine Armand and MEDEF President Patrick Martin. The talks highlighted alignment between Italy and France on policies for energy-intensive industries, steel, and chemicals.

Implications for the Steel Industry

For stakeholders in the steel industry, the focus on CBAM revision signals a critical opportunity to influence policy at a European level. The ministers’ shared commitment to addressing the mechanism’s shortcomings reflects growing recognition of the steel sector’s strategic importance and the need for policies that balance decarbonization with economic resilience.

Source and Photo: Ministry of Industries and Made in Italy