EU needs urgent measures to restore competitiveness of steel industry – EESC

The European Economic and Social Committee presented its opinion on the EU Action Plan for Steel and Metals

Last week, the European Economic and Social Committee (EESC) presented its opinion on the EU Action Plan for Steel and Metals.

It notes that over the last decade, the EU’s share of global steel production has fallen to 7-8%. The European steel industry is in crisis, and urgent action is needed to restore the sector’s competitiveness, protect jobs, and encourage investment during the transition period.

The Committee advocates new comprehensive trade measures for steel to replace those currently in force until their expiry (July 1, 2026). They should cover all countries and relevant steel products using tariff quotas linked to market share and capacity utilization.

The EESC calls for the immediate introduction of a “smelting and casting” rule to prevent circumvention and improve the tracking of steel imports, and for the suspension of the “lesser duty” rule where necessary.

The opinion calls for the publication of a draft law on a carbon border adjustment mechanism (CBAM), which would, in particular, provide for free permits for exports to third countries that do not have comparable climate policies.

In addition, the committee calls on the EC to recognize the importance of scrap as a secondary raw material, among other things by proposing systems to monitor its export.

It is also necessary to develop specific guidelines to support temporary energy price reduction schemes for energy-intensive industries affected by international trade and structural reform of the electricity market.

The committee recommends assessing the investment needs of the steel industry and increasing targeted financial support, potentially using revenues from CBAM and EU ETS for industrial decarbonization projects.

It is proposed to create a Just Transition Fund focused on energy-intensive industries, concentrating on upskilling, reskilling, and supporting worker mobility.

The European Steel Association (EUROFER) welcomed the commitment by European Commissioner for Trade Maroš Šefčovič to present protective measures for steel by mid-October to replace the existing ones.