Urgent Action Needed for the Future of the European Steel Industry

In a recent meeting held in Brussels with representatives from the European Commission, the European Parliament, and the European steel industry association Eurofer, Austrian unions GPA and PRO-GE, along with the works councils of voestalpine, expressed the pressing need for decisive action to protect the future of the European steel sector.

The unions acknowledged the importance of such gatherings in bringing all stakeholders together. However, they emphasized that mere discussions and paperwork will not safeguard jobs. Immediate tangible outcomes are essential, and without a robust political framework, the future of the steel industry is at risk.

Union leaders highlighted that the European Union has introduced several initiatives recently, including a strategic dialogue with the Commission, an action plan for steel and metals, and the Draghi report focusing on competitiveness. Yet, the core challenges facing the industry remain unresolved.

For the energy-intensive steel sector, successful transformation hinges on job security for both current workers and future generations. The absence of a solid social foundation could lead to significant social upheaval within member states and across the European Union.

The representatives from GPA and PRO-GE made it clear that employees rightfully expect viable prospects for their jobs and their families. If political action is not forthcoming, there is a risk of losing entire value chains. Steel is not a minor concern; it is fundamental to the European industrial landscape and serves as a cornerstone for social stability across the continent.

The unions are urging policymakers to establish the necessary conditions for the industry to thrive. This includes reforming the EU Emission Trading System (ETS) to ensure that companies are not stripped of their investment capabilities during this critical transition. Additionally, affordable energy prices, particularly for green electricity and hydrogen, are essential to facilitate the shift towards climate-neutral production.

Furthermore, the establishment of functional lead markets for green steel is crucial to ensure that substantial investments yield economic returns and secure the future of European steel production.