Today, the European Commission presented its long awaited Steel and Metals Action Plan – the EU Commission’s plan to ensure the future of the European steel industry. The Socialists and Democrats have repeatedly called for EU coordinated action to support a sector facing various challenges: dozens of plant closures and job losses, increasing energy costs and unfair global competition. Recent US tariffs on metals will exacerbate the already harsh market conditions for the EU’s steel industry and threaten its future.

The S&D Group reminds the European Commission that the decarbonisation of our economy and industry has to remain the principle driver of our competitiveness. The European steel industry can certainly achieve and maintain a competitive edge in producing green steel, but, for this, we must support our leading companies in the transition towards green production.

Moreover, Europe's continued reliance on imported fossil fuels has led to increased costs of steel production and undermined the international competitiveness of our industry, especially compared to the US or China. Today, we have an opportunity which we must not lose. Transitioning to renewable and affordable energy is the way out of this. Addressing this energy challenge will enhance our steel industry's competitiveness in global markets.

Mohammed Chahim, vice-president of the S&D Group for the Green Deal for Industry, Energy and Climate, said:

“The European steel and metal industry currently faces many problems, such as cheap Chinese steel in the world market, production shrinkage over the years and recently the US tariffs. Today, more than ever, we need to protect the more than 2.5 million workers that – directly or indirectly – work in this industry.

“Today, the Commission is sending a reassuring message: in times of global uncertainty, we can do more. But this is only the first step. Both social progress and climate action must be the driving forces of this strategy. The energy transition, which moves us away from dependence on fossil fuels, can greatly benefit workers when it is developed in Europe.

“We call on the Commission to accelerate the transition to green steel, which will give our producers an edge over outside competitors. In that sense, the EU's Carbon Border Adjustment Mechanism remains a crucial instrument to protect the industry against unfair competition from regions where climate and environmental standards are lower. Creating demand – especially for European green steel – is an area of opportunity. We can be stronger on public procurement if we facilitate the conditions for the industries and create markets to increase demand for European green steel.

“It is crucial that the Commission recognises the synergies between multiple industries such as the automotive and the steel industry.”

Dan Nica, S&D MEP and spokesperson in the European Parliament’s committee on energy, research and industry, said:

“Moving from being a net exporter to a net importer of finished steel in the past decade has hit our steel industry hard: dozens of plants had to close and thousands of workers lost their jobs, across Europe. This is why our Group has repeatedly insisted on the need for a coordinated European steel plan.

“The steel industry, which contributes around €80 billion to the EU's GDP, is vital for our just transition, security, energy and European manufacturing. Moreover, it is crucial for Europe’s strategic autonomy, so let’s give this sector the means to thrive, not just survive. Access to critical raw materials remains crucial for the industry. This is why we call on the Commission to come up with further strong measures that reduce our foreign dependencies and increase our mining production while upholding environmental standards.

“We have to make sure that measures which help reduce energy costs and avoid market manipulations at EU and member-state level do not create a situation in which member states undercut each other. True European coordination will optimise our supply chains and ensure that the benefits are widely shared.”