Brussels, 30/10/2015 (Agence Europe) - The Luxembourg Presidency of the Council of the EU announced on Thursday 29 October that it had called an extraordinary formal meeting of European competitiveness ministers in Brussels on 9 November to discuss the dire situation of the steel sector. After requests from UK Secretary of State for Business Sajid Javid, the Luxembourg Presidency and the European Commission have thus given a swift response to the pressing British calls.
Ministers with responsibility for competitiveness will hold a two-hour meeting late in the afternoon of Monday 9 November to discuss the competition challenges faced by the European steel sector in these very trying times. They will then have a working dinner with sector employers.
The basis for discussions will be the Community steel action plan of June 2013 (see EUROPE 10864) and the work of the high-level group, led by the Commission, on the future of the sector (see EUROPE 11110). According to a Luxembourg source, the external aspects of the issue, such as trade defence, will not be discussed in detail.
UK Secretary of State for Business Sajid Javid, who this week made representation to Luxembourg Economy Minister Etienne Schneider and on Wednesday 28 October met Commissioners Cecilia Malmström (Trade) and Elzbieta Bienkowska (Industry and Internal Market), welcomed the news on 29 October that the “emergency steel meeting” was to be held, to discuss with his European partners the “pressures” faced by the EU steel industry. “I have been lobbying member states and met commissioners to drive up the importance of this issue. I am determined this Council leads to swift action, not just a talking shop”, he stated.
United Kingdom emergency aid. Prime Minister David Cameron has announced “further assistance” for the industry in the UK, which it expects to be authorised as state aid by the Commission. The aim is to “provide relief” to energy-intensive industries, specifically steel, from the costs of the small feed in tariffs, states a press release from the UK government's Department for Business, Innovation and Skills.
The UK government has also announced that further funds will be made available to commence compensation for the costs of the Renewables Obligation which came into effect in 2002. These are the latest measures by the UK government to help the steel sector, including paying over £50 million in compensation for energy costs to date, says the Department for Business.
Eurofer says China is main culprit. The European steel association, Eurofer, welcomed the emergency EU summit on steel and called for an “emergency plan” with measures to stimulate innovation in the sector, reduce energy costs and red tape and restore a level playing field in the face of unfair Chinese trade.
“Surging imports, price depression and job losses are intensifying across the European steel market. Pressures, notably from unfairly traded Chinese steel, are a central cause of EU steel industry distress. Driven by massive excess steel capacity - twice the size of the EU's total steel demand - China has been dumping unprecedented volumes of steel onto international and EU markets”, rages the association.
Eurofer is calling on the EU to increase the speed and effectiveness of its trade defence instruments. “The EU is lagging behind other regions which have recognised the problem and have taken immediate action, such as the US, India, Turkey and many others”, it states. It also urges the EU to refuse market economy status for China so long as that country fails to fulfil the criteria.
The association says that Chinese steel exports have exploded to 110 million tonnes this year, doubling its export volumes over the past two years. The EU sector lost over 80,000 jobs, 20% of its workforce as a result of the 2008 crisis and at least a further 5,000 jobs have been lost over the last quarter.
Referring in particular to the EU's emissions trading scheme (ETS), Eurofer calls on the EU to shape an energy and climate policy “that does not create costs not borne by our global competitors”. (Original version in French by Emmanuel Hagry)