Europe’s economic independence is only possible with a strong steel industry – CoR

On December 11, members of the European Committee of the Regions (CoR) adopted a conclusion on the Action Plan for Steel and Metals, setting out urgent requirements for protecting the sector. This is stated in the CoR report.

They emphasized that since the early days of European integration, the steel sector has been a cornerstone of European regions and cities, stimulating local economic development, creating high-quality jobs, and supporting critically important industries.

The European Committee of the Regions’ conclusion highlights a number of issues affecting the industry.

In particular, high energy costs are identified as the most important factor undermining the competitiveness of European metallurgy during the decarbonization process, especially given the strong pressure from global competitors. The CoR called for urgent reform of the energy market and accelerated support for the introduction of clean technologies such as green hydrogen.

In addition, a number of interrelated issues were identified that need to be addressed to ensure a green and competitive future for Europe’s industrial regions.

“The viability of European factories is under threat from trade conflicts and unfair trade practices, global steel overcapacity, and carbon leakage as companies move production to countries with weaker climate rules,” the statement said.

The Committee of the Regions is therefore calling for stronger trade defense instruments, a CBAM mechanism, and restrictions on scrap exports to protect resources and jobs. The CoR also insists that demand for European low-carbon steel and metals should be increased through public procurement and a Europe-wide green steel label.

Members of the Committee of the Regions stressed that in order to effectively support the transition of EU industry, labor, and regions, the EU must supplement existing Cohesion Policy resources with sustainable and targeted funding. A local approach to industrial policy with a strong territorial focus and support for regional industrial ecosystems is crucial to ensuring the success of these measures on the ground.

It should be recalled that steelmakers and related sectors called on the EC to extend new protective measures for steel, helping to preserve the entire value chain in Europe, from primary sectors to downstream sectors.