The EU Steel Action Plan, vigorously advocated by the steel lobby, poses a significant threat to the competitiveness of small and medium-sized enterprises (SMEs) within the downstream industry. The recent stance taken by the European Economic and Social Committee (EESC), aligning with multinational steel producers and giving scant attention to SMEs in their latest publication, underscores the crucial role that millions of employees and companies in this sector play in the European Union.
EU Steel Action Plan Endangers Downstream Industry
The EU Steel Action Plan, championed by the European steel lobby, presents a formidable risk to the competitiveness of steel processing and consuming firms, accounting for over 11 million employees across the European Union.
Impending Destruction of SME Competitiveness
The recent opinion released by the European Economic and Social Committee (EESC) on 'Sector-specific industrial policies supporting greater strategic autonomy' vividly illustrates its biased support towards large multinational corporations and their extensive lobbying efforts. Despite SMEs being integral economic players in European industry, they are merely cursorily referenced in the EESC paper. This disparity raises questions about the European Union's purported focus on SMEs.
Influence of EU Steel Manufacturers' Lobbying Efforts
The EESC's opinion reflects the lobbying influence of EU steel manufacturers, emphasizing the indispensability of the metallurgical industry to the EU's strategic autonomy and the vitality of various industrial sectors such as rail, nuclear, maritime, automotive, defense, and more.
OECD Projections on EU Steel Production
According to OECD projections, the EU's crude steel production capacity has remained stable at approximately 214 million tonnes for years. By 2026, an additional 20 million tonnes of capacity are set to be added, reaching 234 million tonnes, the highest since 2010, negating any decline in European steel production.
Concerns Over OECD Data Accuracy
Questions have been raised about the accuracy of OECD data referenced by the EU steel lobby, suggesting potential inclusion of outdated or defunct crude steel capacities. If accurate, this discrepancy likely affects all countries monitored by the OECD.
CBAM's Impact on SMEs and Calls for Equality
The Carbon Border Adjustment Mechanism (CBAM) poses significant bureaucratic and financial burdens on SMEs. Demands for exemptions for CO2-intensive imports by EU steel manufacturers raise concerns about fairness and equality among economic operators.
Call for Reform and Abolition of CBAM
A demand for equal treatment or the immediate abolition of CBAM has been raised to ensure a level playing field for all stakeholders. Efforts to reform the EU energy market and eliminate subsidies for energy-intensive industries are also recommended to address market distortions.
Efficiency and Responsibility of Large Corporations
Efforts to enhance efficiency and cost control within large corporations are essential. The notion of a level playing field must extend beyond rhetoric to practical measures that promote fair competition without undue subsidies or market protections.
Practices in the Steel Industry
Strategic practices like order book shaping are common in the steel industry to optimize energy costs and operational efficiency. These practices, although effective, should be transparent and aligned with broader industry standards.
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