Von der Leyen puts steel at centre of EU industrial competitiveness push

European Commission President Ursula von der Leyen has outlined plans to strengthen European industrial production through lower energy costs, greater trade protection, investment support and the creation of lead markets for low-carbon materials, including steel.

Speaking at the annual conference of French employers’ association MEDEF, von der Leyen said Europe’s traditional economic model of cheap imported energy, expanding global trade and growing access to China could no longer be taken for granted. European manufacturers are instead facing high energy costs, regulatory complexity and increasingly uneven international competition.

For the steel industry, several elements of the Commission’s emerging industrial strategy are particularly relevant: measures against unfair imports, cheaper electricity, continued carbon-leakage protection and policies designed to create demand for European low-carbon steel.

Lead markets for steel

Von der Leyen highlighted the forthcoming Industrial Accelerator Act as an important part of the EU’s response. The legislation is intended to combine faster permitting with a European preference and dedicated lead markets for steel, cement, aluminium, vehicles, batteries and clean technologies.

Public procurement and state aid would also be used more strategically to support low-carbon production and resilient European supply chains. The underlying aim is to give manufacturers greater certainty that markets will exist for investments in cleaner production technologies.

This could be particularly significant for European steelmakers investing in capital-intensive decarbonisation projects while facing competition from conventionally produced imported steel.

Energy costs remain key competitiveness issue

Von der Leyen described energy as the main factor currently limiting European competitiveness and independence. According to the Commission president, European energy prices remain around two to three times higher than those in the US or China.

The Commission wants to accelerate industrial electrification while reducing electricity costs through more long-term contracts, faster grid expansion and additional storage capacity. Von der Leyen noted that more than 80 GW of renewable capacity was installed in the EU last year, but six times that capacity is still waiting for a grid connection.

For energy-intensive steel producers, the Commission also plans changes to carbon-cost support. Von der Leyen said free EU ETS allowances should remain available after 2030 for companies investing in decarbonisation. The Commission estimates its proposals could reduce industrial carbon-related bills by almost €10 billion by 2030.

A new Investment Accelerator is meanwhile intended to mobilise €30 billion from 2027, while the planned Industrial Decarbonisation Bank is expected to deploy more than €100 billion by 2030.

EU steps up response to Chinese competition

Trade defence was another major theme of the speech. Von der Leyen said Chinese imports into the EU have increased by 45% over five years, while European exports to China have declined. She also pointed to high levels of Chinese industrial subsidies and Europe’s dependence on China for several critical raw materials.

The EU opened more than 30 new trade defence investigations last year, almost three times the historical average, according to von der Leyen. She indicated that Brussels intends to make greater use of its trade instruments when dialogue fails to address market distortions.

The measures form part of a broader shift towards an EU industrial policy that places production capacity and economic security more prominently alongside climate policy. For European steelmakers, the direction is increasingly clear: Brussels wants decarbonisation investment to be backed not only by carbon pricing, but also by financing, trade protection, lower energy costs and stronger domestic demand for low-carbon steel.

Source and Photo wwww.commission.europa.eu