EUROFER welcomes long-term budget and EU recovery plan

A special European Council will be held in Brussels on July 17-18 to discuss the EU's long-term budget and the next generation EU /EU recovery plan. The European Steel Association welcomes the Recovery Plan, but calls on leaders to take additional immediate action to ensure a fast and sustainable economic recovery. EUROFER CEO Axel Eggert said: “The Recovery Plan proposal focuses on investments in digitization and a green transition from 2021 to 2024. However, policymakers should focus on the Recovery Plan on investments in sectors most affected by the pandemic, which are highly affected. the risk of carbon leakage, and which have ambitions to significantly reduce their CO2 emissions by 2030. We ask for clear support from the European Council for a low-carbon industry initiative. Support must be provided regardless of the location of the respective sites in Europe to avoid competitive distortion. One way to do this is to allow other EU and country funds to complete the Recovery Plan. ”

He said: “You don't wait to put out a fire until the house has burned down - and the European economy cannot wait until 2021 to start rebuilding. Therefore, EU leaders should consider additional short-term emergency measures for hard-hit sectors such as steel and its value chains. These should include, inter alia, immediate measures against dumping or sudden surges in steel imports, incentives to stimulate demand in the downstream value chain, and a force majeure clause for the EU Emissions Trading Scheme to ensure free allocation levels beyond 2020. the negative impact of the indirect consequences of the COVID-19 pandemic ”.

Eggert concluded: “It is absolutely contrary to the interests of Europe if imports are given de facto preference over the recovery brought on by domestic steel production. This is already happening now as a result of the existing global overcapacity for steel production meeting the EU porous steel requirements - allowing imports to enter the EU market at pre-crisis levels. If the EU does not find a solution to preserve its industry using the funds at its disposal, it will not be able to lead the green transition in the future. "

During the crisis, demand for steel fell to 50%, given the sharp drop in activity in steel-using industries such as the automotive, construction and mechanical engineering industries. 40% of steel workers were temporarily laid off or their working hours were reduced. Manufactured