The steel industry in the EU is seeking support to compete with the US Green Deal

The Eurometaux association which represents major European producers including Glencore, Boliden and Aurubis called on the EU to take a cue from US President Joe Biden’s inspired “Deflation Act” which includes billions of dollars in subsidies to spur local investment in electric vehicles and renewable energy.

EU leaders will meet in Brussels next month to discuss a response to the controversial US law with some pushing for a “made in Europe” approach to help strengthen local companies. French President Emmanuel Macron has called for an EU financial package of 2% of European GDP to rival the US plan of nearly $370 billion.

The US deflation law, while discriminatory, has shown what a proactive cleantech industrial policy can look like. We in Europe should take inspiration from his example and provide ‘more carrot and less stick’ to our industries, especially in today’s energy crisis.

Eurometaux said in a letter to the European Commission

Eurometaux proposes five key measures to support the development of the industry, including fast-tracking and approval of clean energy projects and tax credits to support the production of strategic metals. The association also reiterated calls for measures to address high electricity prices, which have led to sharp cuts in metals production in the region.

While electricity prices have fallen sharply in recent weeks and some steel plants have started to ramp production back up, Eurometaux said the industry will continue to struggle as energy shortages persist in the coming years. The association called on the EU to extend temporary state aid measures that expire at the end of the year after they were put in place in response to the crisis.

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