Action plan tackles fall in demand, environmental
challenges and unfair competition with focus on cost-
cutting and innovation.
The EU is the second-largest producer of steel
worldwide, accounting for 11% of global output and
employing over 360 000 people.
But times are hard. Demand has fallen with the global
economic downturn, energy costs continue to rise,
many raw materials must be imported, competition is
often unfair and meeting environmental requirements
can be expensive.
With global demand forecast to increase by 2025, it is in
Europe’s interests to help the industry become more
competitive. A newly released EU Commission action
plan for the European steel industry tackles 7 key areas:
Regulation
The EU will assess the regulatory burden on the steel
industry, checking that EU laws are not creating extra
costs.
Boosting demand
The construction and automotive sectors account for
around 40% of demand between them, and both have
been hit by the economic crisis. Two EU initiatives will
stimulate these sectors (CARS2020 and Sustainable
Fair competition
Some non-EU countries have introduced barriers to EU
exports, or incentives for their own exports, giving an
unfair advantage to their own companies. The EU will
continue to negotiate free-trade agreements with non-
EU countries, and challenge unfair practices.
Bringing down energy costs
Energy accounts for around 40% of the costs of
producing steel, and European companies pay more
than most of their competitors. The EU’s plan
to interlink its energy market will increase competition
and lower costs.
Climate policy
Clear environmental rules would encourage the
investment needed to adapt to greener technologies.
The Commission will promote best practices, but
countries must also look into national polices affecting
prices and set aside funding for energy efficiency
projects.
Innovation
Between 2014 and 2020, almost €18 billion in EU
funding will be available for strengthening industrial
leadership in innovation through the Horizon
2020 research programme.
Support during restructuring
The steel sector has already lost 40 000 jobs through
restructuring. There are funds in place to help those
affected and to ensure that key skills are retained. As
the steel workforce is ageing, the industry also needs to
attract young and creative people.
A group will be set up to monitor progress in the areas
above, and the Commission will take stock of progress
in 12 months.
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