Ten prominent trade associations representing the many industries that use steel in Europe share serious concerns about the negative effects on manufacturing that can be expected following the European Commission’s proposal for continued protection of the EU steel market.

“The combined effect of CBAM, the phaseout of free ETS allowances and the impact of these new safeguarding measures will raise the cost of steel produced in the EU and imported steel and have a really negative impact on the competitiveness of European downstream industries,” said Ulrich Adam, Director General of Orgalim.

To support a sustainable recovery, Europe must take decisive steps to improve the business environment for its technology industries. This includes simplifying regulation and reducing administrative burden, which currently absorbs resources that could otherwise be directed toward growth and innovation. At the same time, increasing both public and private investment in research, innovation and industrial transformation will be essential to ensure competitiveness in future technologies. In addition, the EU should continue to take steps to secure trade agreements with new markets.

In a joint statement issued by the European Steel Using Industries it said: “Our associations are concerned about the negative effects on Europe’s downstream manufacturing industries that can be expected from the European Commission’s proposal for continued protection of the EU steel market.”

“We understand and support the need to level the playing field for the European steel sector and address global overcapacities. However, we believe that the parameters as proposed by the Commission go too far in ring-fencing the European market. A better and fairer balance must be struck between the needs of European producers on the one hand, and users of steel on the other.”