Assofermet calls for concrete EU action to stimulate steel demand

ASSOFERMET welcomes the European Commission’s Steel and Metals Action Plan as a positive step toward safeguarding Europe’s strategic industries. However, the association stresses that the current crisis in the EU steel sector cannot be addressed by the plan alone, which it views as lacking concrete, demand-driven measures.

ASSOFERMET emphasizes that the core challenge facing the steel sector is the persistent weakness in EU steel consumption—particularly among end-use sectors such as automotive, construction, energy, and machinery. These industries, which form the foundation of EU manufacturing, require targeted support to reverse long-standing trends of offshoring and market erosion.

The organization warns that continued focus solely on upstream production risks undermining the broader steel value chain—comprising processors, distributors, and downstream manufacturers—and jeopardizing over 13 million EU jobs.

ASSOFERMET urges EU policymakers to complement the existing plan with targeted economic stimulus. Key proposals include:

• Financial incentives for SMEs to modernize or replace steel-intensive equipment;

• Tax credits and reduced VAT rates on EU-produced, steel-rich goods;

• Expansion of the CBAM mechanism to include finished steel-intensive products;

• Favorable treatment of steel products in public procurement across member states.

To ensure effectiveness, ASSOFERMET advocates for a three-year economic maneuver using EU budget resources, as proposed by Mario Draghi, aimed at revitalizing domestic demand and supporting the transition to green steel production without burdening competitiveness.

ASSOFERMET remains available to work with EU institutions on refining and implementing these recommendations.

Source: Assofermet, Photo: Fotolia