The European Parliament recently held a plenary debate to address the pressing challenges facing the European steel industry, focusing on unfair competition from China and escalating energy costs. This debate, held on October 23, highlighted the urgent need for a comprehensive action plan to ensure the industry's viability while addressing environmental concerns and maintaining competitiveness.
European Commissioner for Equality Helena Dalli opened the debate, emphasizing the critical role of a strong, low-carbon steel industry for Europe's economic and industrial future. She noted that Europe's steel production has decreased by 20% over the past decade, resulting in a trade deficit of about 10 million metric tons, with Europe now accounting for only 7% of global steel production. Dalli called for significant investments in clean steel projects to help Europe regain its competitive edge in the global market.
The debate underscored the impact of high steel production in China, which produces more than half of the world's steel. Members of the European Parliament (EP) expressed concerns about China's subsidized overcapacity, which floods the global market with cheap, high-emission steel. Raphael Glucksmann of the Progressive Alliance of Socialists and Democrats pointed out that China's production far exceeds its consumption, creating a surplus that undermines European producers.
Juan Ignacio Ziodo Alvarez from the European People's Party highlighted China's dramatic increase in steel production over the past 20 years, which is expected to expand further by 2026. He stressed the need for urgent measures to protect the European steel sector from this unfair competition. Letizia Moratti of the Christian Democrats echoed these concerns, noting that low-cost steel imports from China and Indonesia threaten jobs, income, and environmental standards in Europe.
The debate also addressed the high energy costs in Europe, which are two to three times higher than in the US and China. Tom Berendsen from the Christian Democrats emphasized that these costs are a significant burden on the steel industry, hindering its ability to compete globally. He called for measures to reduce energy costs and support the transition to clean steel production, which requires substantial investment.
Christian Ehler, also from the Christian Democrats, advocated for a steel action plan that includes reducing imported steel, applying safeguard clauses, and implementing antidumping and anti-subsidy measures. He stressed the importance of expanding the electricity network and investing in hydrogen energy to ensure access to affordable energy for the steel industry.
Rudi Kennes from the Left group highlighted the need for stable energy supplies and massive public investment to support the industrial transition. He urged energy companies to reinvest profits into society to facilitate this transition. Meanwhile, Sara Matthieu from the Greens/European Free Alliance called for a Clean Industrial Deal to drive investment in green technologies and create demand for low-carbon European products.
The debate concluded with a call for the European Commission to adopt strong measures, including a carbon border tax, to prevent the steel industry from collapsing. Christophe Grudler from Renew Europe emphasized the need for emergency measures and new safeguards to deter dumping.
Helena Dalli closed the debate by reiterating the shared goal of ensuring a thriving and sustainable steel industry in Europe. She emphasized that the solution lies in an industrial deal that supports decarbonization while promoting growth and a just transition for all. The European Commission looks forward to collaborating with the European Parliament to achieve these objectives.
