European Parliament calls for swift action to save European steel sector

On Wednesday 23 October, MEPs debated the state of the steel industry in the EU, which is under threat. All the groups believe that high energy prices are primarily to blame. Chinese overcapacity on the world market is also aggravating the situation of European steelworks, which are being forced to cut jobs, said most MEPs. Some called for an action plan for the steel industry, as requested by the sector’s representative, Eurofer (see EUROPE 13505/32).

“100,000 jobs lost in the industry in Europe in 15 years is unacceptable”, stressed Christophe Grudler (Renew Europe, French). Mr Grudler and all his colleagues believe that the EU must act quickly to bring down energy prices.

He also shares with other groups the need to review the existing safeguard measures on steel, which have been extended until 2026 (see EUROPE 13440/34). The EU must “review the steel safeguard so that it can respond to the reality of the market”, according to Juan Ignacio Zoido Álvarez (EPP, Spanish). Some MEPs feel that the current measure is not responsive enough.

The groups also agree on the idea of creating green lead markets in the EU. The aim is to use public procurement to stimulate demand and give producers predictability. “We need ‘Made in Europe’ steel, so we need lead markets for green steel”, insisted Terry Reintke (Greens/EFA, German).

While the PfE, ECR and ESN groups support the call to create green lead markets, they also stress the negative impact of the ETS and CBAM on the steel industry.

In response to the various comments made by MEPs, European Commissioner Helena Dalli agreed on the need to take action to save the sector. “To do this, we need massive investment in new clean steel projects”, she said. She also referred to the ‘Competitiveness Fund’ promised by the President of the European Commission, Ursula von der Leyen, and to the revision of the rules on public procurement.

Ms Dalli also supported the call for a steel action plan, which she said would be developed once the new Commission had taken office. (Original version in French by Léa Marchal)