At a meeting on December 11, members of the European Committee of the Regions (CoR) adopted a formal opinion on the Steels and Metals Action Plan, outlining urgent measures needed to safeguard Europe’s industrial backbone amid rising costs, global competition and the green transition.
Steel is a strategic pillar of Europe
CoR members emphasized that the steel and metals industry has been central to European integration from its earliest days. Beyond its direct economic contribution, the sector underpins the automotive, defence, construction and energy industries, while providing high-quality employment and sustaining regional economies across the EU. Local leaders warned that weakening this industrial base would undermine not only production capacity, but also Europe’s strategic autonomy and long-term social stability.
Energy costs undermining competitiveness
High energy prices were identified as the most decisive factor eroding the competitiveness of Europe’s steel and metals producers, particularly as the sector moves through the decarbonization process. CoR members noted that electricity prices in Europe are currently up to three times higher than in the United States, a gap that has already contributed to plant closures and delays in critical investment decisions.
Local leaders argued that, without urgent reform of the EU energy market and faster deployment of clean technologies such as green hydrogen, Europe risks losing industrial capacity to regions with lower energy costs. They underlined that access to affordable, secure and low-carbon energy remains fundamental to achieving the green transition while keeping production in Europe.
Trade pressures and carbon leakage risks
Beyond energy costs, CoR members highlighted mounting pressure from global competition, including trade conflicts, unfair trading practices and persistent global steel overcapacity. They warned that these dynamics are accelerating carbon leakage, as companies relocate production to countries with less stringent climate rules.
To counter these risks, regional leaders called for stronger EU trade defense instruments and a reinforced Carbon Border Adjustment Mechanism (CBAM). They also stressed the need to limit scrap metal exports in order to protect strategic raw materials and safeguard industrial jobs within the EU.