By Axel Eggert, Director General of the European Steel Association
(Opinion) On the occasion of the extraordinary Energy Council, the European steel industry calls on EU policymakers to provide immediate relief to high energy prices and costs for energy-intensive sectors exposed to international competition.
Conventional trade and energy policy measures are insufficient and would seriously jeopardize the survival of these sectors, which are the backbone of EU value chains.
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Current gas and electricity prices threaten the sustainability of steel production in the EU.
Producers from third countries, which are not subject to such restrictions or whose governments do not take similar measures against Russian aggression, take advantage of the situation by exporting massively to the EU at distorted prices.
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Consequently, Europe is experiencing steel mill closures, production cutbacks and layoff programs.
The war in Ukraine and the subsequent, necessary EU sanctions against Russia have plunged the EU into an extraordinary crisis.
“It calls for extraordinary and immediate action by EU policymakers to prevent the destruction of Europe’s industrial base, going beyond the usual EU ‘rule book’, including rapid emergency trade measures,” Axel said. Eggert, Director General of the European Steel Association (EUROFER). .
“The current crisis undermines the business model of some energy-intensive industries, which are the backbone of all industrial value chains.”
“This means concrete risks for high-value jobs, investment and know-how in Europe to the advantage of third countries that benefit from much lower energy prices and do not share the same level of climate ambitions,” he added.
An EU-wide response is necessary for Europe to overcome the emergency by pursuing further integration of national energy markets.
Given the severity of the crisis, a package of different solutions is needed and no option should be left off the table.
If the EU institutions do not take urgent measures for energy-intensive industries exposed to global competition, their survival is very uncertain.
However, the Commission’s preliminary proposals are lacking in this regard.
“The European steel industry is ready to contribute to the efforts of European policy makers in developing concrete solutions to overcome the crisis and provide a more united and prosperous EU”, concluded Mr. Eggert.
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EUROFER is located in Brussels and was founded in 1976. It represents the entirety of steel production in the European Union.
EUROFER members are steel companies and national steel federations across the EU.
Major steel companies and the national steel federations of Turkey and the United Kingdom are associate members.
ABOUT THE EUROPEAN STEEL INDUSTRY
The European steel industry is a world leader in innovation and environmental sustainability.
It has a turnover of around €125 billion and directly employs around 310,000 highly skilled people, producing an average of 153 million tonnes of steel per year.
More than 500 steel production sites in 22 EU member states provide direct and indirect employment to millions more European citizens.
Along with Europe’s manufacturing and construction industries, steel is the backbone of Europe’s development, growth and employment.
Steel is the most versatile industrial material in the world. Thousands of different types and grades of steel developed by industry make the modern world possible.
Steel is 100% recyclable and is a fundamental part of the circular economy.
As a primary engineering material, steel is essential in developing and deploying innovative technologies to mitigate CO2, improve resource efficiency and drive sustainable development in Europe.
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