Europe needs a breakthrough in industrial policy – Federacciai

Antonio Gozzi, President of the Italian Steel Producers Association Federacciai, called for a turnaround in European industry that will protect innovation and sustainable development in production at the Made in Steel exhibition in Milan. This was reported by Italian Telenord.

He noted the unfavorable European context in terms of energy costs for companies investing in the green transition. Another critical point is the export of scrap, which is a strategic raw material for green steel production. The President of Federacciai noted that scrap continues to leave the continent. To preserve this resource, appropriate European regulation is needed.

Gozzi also criticized “ideological inertia” and “technocratic resistance” as obstacles to effective European industrial policy. According to him, a revolution in industrial thinking is needed that can overcome current regulatory blocks and encourage a competitive restart of the sector.

President Federacciai is concerned that the EU’s action plan for steel and metals does not contain any concrete proposals to address the critical challenges facing the European steel industry, Kallanish reports. In particular, there are no strategies for energy prices, except for instructions to member states to reduce the relevant tax rates.

Gozzi noted that the current prices for permits under the EU ETS lead to an increase in the cost of electricity by about €25-30/MWh. In addition, it is necessary to consider reducing the tax burden on gas for power plants.

Another problem for steelmakers is the labeling of green steel. The European Commission does not distinguish between green steel produced in blast furnaces and EAF. The sector needs effective due diligence for such products. The labeling should accurately reflect the actual emissions associated with production by both methods.

Austria’s Voestalpine AG has called on the federal government to renew the mechanism for compensating the cost of electricity for energy-intensive enterprises. In a letter to the authorities, the company emphasized that such support is not a privilege but a tool provided for by EU law.