EUROFER warns weak origin rules threaten EU steel competitiveness

Europe’s steel industry has warned that the EU’s proposed Industrial Accelerator Act (IAA) could weaken Europe’s industrial base unless stronger safeguards are introduced to support low-carbon steel produced within the European Union.

The European Commission’s proposal aims to accelerate industrial decarbonisation, strengthen strategic value chains and raise manufacturing’s contribution to at least 20% of EU GDP. The initiative also seeks to create lead markets for low-carbon materials in sectors such as automotive, defence and construction.

However, according to the European Steel Association (EUROFER), the current framework does not provide sufficient incentives to support the massive investments required for the decarbonisation of Europe’s steel industry.

Axel Eggert, director general of EUROFER, said: “If Europe wants to decarbonise its steel industry, it must create demand for low-carbon steel made in Europe. Otherwise, the EU risks funding foreign production while weakening investment, jobs and industrial capacity at home.”

A key point of criticism is the absence of clear and consistent “Union origin” rules. Under the current proposal, products could still qualify as “Made in EU” even if the steel itself was produced outside Europe and only processed within the EU.

EUROFER argues that this creates a major competitive imbalance, particularly as more than 75% of EU steel imports originate from countries linked to the EU through free trade agreements. According to the association, products from nearly 80 countries could potentially benefit from EU support mechanisms without facing comparable carbon costs.

The association is therefore calling for a single definition of Union origin based on the “melted and poured” principle, meaning the steel must be produced in liquid form within the EU to qualify for support schemes and public procurement preferences.

In addition, EUROFER is urging the EU to introduce stronger demand-side measures, including higher minimum quotas for low-carbon steel in public procurement and support programmes, as well as broader coverage of strategic sectors such as wind energy and electrical steel applications.

Without further adjustments, EUROFER warns that the Industrial Accelerator Act could ultimately shift investment and emissions abroad instead of strengthening Europe’s industrial competitiveness and strategic autonomy.

Source and Photo: EUROFER