Brussels, 12/02/2013 (Agence Europe) - Ten years after the ECSC treaty expired in 2002, Europe is struggling to support its steel sector that is currently experiencing great difficulty.
The high-level discussion on the future of the steel industry in Europe set up in July 2012 unveiled its recommendations on Tuesday 12 February for maintaining the competitiveness of the steel sector, ahead of the action plan that the European Commission will present in June. In order to help a sector that is in serious trouble as it is confronted with such fierce world competition, a working group - led by European Commissioners Antonio Tajani (Industry) and Laszlo Andor (Social Affairs) and representing 16 member states, companies and unions from the sector - has identified action to take in a dozen areas. The EU saw its market share collapse from 22% to 12% while China's climbed from 8% to 45% between 2001and 2011, and is faced with a clear contraction in domestic demand that led to European production falling by over 30% between 2006 and 2009, to stand at 83% of its 2007 level in 2012, resulting in 20-25% overcapacity.
As regards trade, the working group recommends the pursuit of liberalisation objectives but calls for an additional impact analysis of free trade agreements, before any such agreements are signed, and for examination of trade defence instruments. On the chapter on access to raw materials, it recommends analysis of the scrap metal trade outside the EU in order to ensure its secondary market, and it proposes including blast furnace coke among its critical raw materials. On the climate policy level, the group recommends setting up additional national funding schemes for the development of new technologies, including earmarking of emissions trading system (ETS) revenues, and it suggests continuing to pay attention to risks of carbon leakage after 2020 when developing 2030 policy frameworks for energy and climate. With regard to the energy chapter, which is essential for an industry that is a major consumer, the group recommends the publication of an annual report on electricity prices in the EU compared to developed countries, indications on the ETS impact and the effect of renewables on electricity prices, and indications on long-term electricity contracts. With regard to employment, it supports an anticipative approach and socially responsible restructuring in consultation with stakeholders, and it suggests launching an inter-service task force to investigate and follow up each case of plant closure or significant downsizing. Lastly, with regard to innovation and R&D, the group advises supporting demonstration projects, the deployment of new technologies, and investment in the best available technologies. (EH/transl.fl)