In Brussels, the European steel sector is rallying for urgent action as it faces unprecedented challenges. With Commissioner-Designate Stéphane Séjourné's upcoming hearing in the European Parliament, steel industry leaders and workers, supported by cross-party Members of the European Parliament, are calling for an EU Steel Action Plan. This initiative aims to restore the sector's competitiveness, support its green transition, and save thousands of jobs across Europe. The urgency is underscored by the current political transitions in both Europe and the United States, which add further complexity to the global market dynamics.
The European steel industry finds itself in a precarious position due to record-high global overcapacity and uncompetitive energy and raw material prices. These factors have plunged the sector into crisis, putting over 300,000 direct jobs and 2.3 million indirect jobs at risk. The European steel social partners, including industriAll Europe and the European Steel Association EUROFER, are advocating for immediate EU intervention to safeguard the sector's future. They emphasize the need to protect decarbonization investments and the livelihoods of thousands of skilled workers.
A joint set of demands has been presented to the European Commission and EU Member States, receiving broad support from various political parties. The demands focus on ensuring that the EU Steel Action Plan is robust and effective, with the social partners urging for its publication within the first 100 days of the new Commission. The plan is seen as essential to prevent further production cuts, site closures, and bankruptcies, which have become all too common across Europe.
Judith Kirton-Darling, General Secretary of industriAll Europe, highlights the critical nature of the situation. She notes that steel jobs are highly skilled and vital for maintaining Europe's industrial base. The social partners strongly oppose the closure of European steel sites, only for their market share to be filled by cheaper, environmentally harmful imports. They argue that decarbonization efforts must not lead to deindustrialization and stress the importance of a level playing field to ensure a sustainable future for European steelworkers.
Axel Eggert, Director General of EUROFER, underscores the strategic importance of the steel industry. He points out that steel is integral to manufacturing and essential for clean technology value chains, including renewables and electric vehicles. The current crisis threatens not just the steel industry but Europe's overall economic prosperity and resilience. With energy costs significantly higher than those of competitors in the US and China, the call for an EU Steel Action Plan is more pressing than ever.
The proposed action plan includes several key measures. It calls for strengthening EU trade defense instruments and implementing a more robust tariff regime to address global steel overcapacity and unfair trade practices. Additionally, the plan advocates for measures to ensure the effective implementation of the Carbon Border Adjustment Mechanism and policies to create lead markets for green steel produced in Europe. Support for investment in the transition to green steel and securing access to critical raw materials are also prioritized.
Furthermore, the social partners emphasize the need for strong social policies to support good industrial jobs in Europe. This includes advocating for an EU Directive on Just Transition to ensure that the shift towards greener production methods does not come at the expense of workers' livelihoods. By addressing these multifaceted challenges, the EU Steel Action Plan aims to secure a viable future for the European steel industry and its workforce.
