Steel

In 2008, Europe was hit by a vast and profound crisis in the steel sector.

According to 2019 estimates, demand for steel remains 27% below pre-crisis levels and up to 40,000 jobs have been lost in recent years.

To help the European steel industry address these challenges and return to pre-crisis production levels, the EU Commission adopted an Action Plan on the competitiveness of the steel sector as early as 2013, including with the creation of a high-level group on steel.

EU Action Plan

The plan is the Commission’s response to the crisis in the steel sector and sets out actions to help ensure that the European steel industry remains competitive and sustainable. It also seeks to ensure that the European steel industry can compete globally and develop the next generation of steel products that are vital for other key European industries such as the automotive, construction, electronics, mechanical and electrical engineering industries.

A strong and competitive steel sector is therefore important for Europe’s industrial base. The EU is the second largest producer of steel in the world, with an output of over 177 million tonnes of steel a year, accounting for 11 % of global output. There are some 500 production sites split between 24 EU countries, making it a truly European industry.

Economic downturn
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Today, the European steel sector finds itself in a very difficult situation. The ongoing economic crisis has led to a marked downturn in manufacturing activity and associated steel demand. As a result, several production sites have closed or reduced output with corresponding job losses.
The plan covers a large number of technical areas. This summary gives a flavour of some of the areas covered.

Market access
Among other things, the Commission plan proposes supporting demand for EU-produced steel both at home and abroad by acting to ensure EU steel producers have access to non-EU markets through fair trade practices.

Jobs and skills
With regard to jobs, the Commission is looking to promote skills development measures and measures targeting youth employment in the sector to boost the sector’s competitiveness. Another idea is to explore the possibility of using relevant EU funds to help workers to find alternative employment in cases of production site closures. The Commission will also encourage the creation of a European skills council for the steel industry to bring together existing national organisations working on skills development and employment in the steel sector.

Coordination
In addition, the Commission proposes setting up a high-level group on steel with an annual meeting for discussions that are designed to support the efforts of the European steel sector to maintain and improve its capacity to compete in the global market.