The European Commission supports the EU steel industry

The steel industry has long occupied a strategic place in the EU economy, stimulating innovation and employment. In order to face the crisis in steel demand after the economic crisis and to ensure a promising future for the sector, the European Commission is working to stimulate the industry. As steel is closely linked to many industrial sectors, such as the automotive industry, construction, electronics or renewable energies, the EU objective of increasing the share of the industry’s GDP to 20% by 2020 is vital.

Why is the steel industry important in the EU economy:

Production – the EU is the second largest steel producer in the world, after China. Its production is over 177 million tons of steel per year, representing 11% of global production.

Link to other sectors – steel is closely linked to many important industries, such as the automotive industry, construction, electronics and mechanical engineering.

Cross-border dimension – 500 production units are distributed in 23 EU countries.

What does the European Commission do for the steel industry:

The action plan – as a result of the economic crisis, the demand for steel remains 27% below the pre-crisis level. And up to 40,000 jobs have disappeared in recent years. To help the European steel industry face these challenges. And to return to pre-crisis production levels. The commission adopted an action plan regarding the competitiveness of the steel sector. In 2013, he proposed the formal creation of a high-level Group on steel.

EU funds – various EU funds and policy instruments such as Horizon 2020, structural funds and the Coal and Steel Research Fund can be mobilized to mitigate social costs and to ensure that the skills required for steel production are retained, for the future competitiveness of the industry. In order to minimize the social impact, good practices in the field of training and retraining should be promoted at the company level.

Challenges facing the EU steel industry:

The main challenges for the EU steel industry are related to the cost and availability of raw materials and energy, environmental regulations and climate change. As well as competition from producers from countries outside the EU.

The regulatory framework – EU legislation is essential for sustainable development. Also, for the good functioning of the internal market, for the certainty and predictability of investors. As well as for ensuring fair competition conditions for the steel industry.

Stimulating steel demand – depends on a few key industries, such as the construction industry and the automotive sector. In order to ensure the recovery in these sectors, it is important to implement EU initiatives oriented towards growth and sustainability.

International level – non-EU steel producing countries often use trade restrictions to benefit their own steel industries. The EU is tackling trade barriers by implementing its market access strategy. International commitments and ensuring fair competition conditions for the steel sector of the EU are required.

Access to raw materials is essential for the steel industry and resources are limited in Europe.

Trade is particularly important for steel. The Commission supports the liberalization of international trade within the World Trade Organization (WTO). On a bilateral level, the negotiation of free trade agreements (FTA) is an essential tool to achieve a fair competitive environment for EU companies.

Energy supply and price – similarly to other large energy-consuming industries, the cost of energy is one of the main drivers of competitiveness for the EU steel sector. Energy costs represent up to 40% of the total production costs of steel. The European industry faces the increase in energy prices, more than most of its international competitors.

Article source: http://ec.europa.eu/growth/sectors/raw-materials/industries/metals/steel/index_en.htm