Decarbonization in the EU leads to lower steel production: Marcegaglia
The EU's decarbonization strategy, incorporating ideological and unrealistic goals, could lead to a long-term decline, particularly in flat steel products, Antonio Marcegaglia said[b]Kallanish[/b]last week hosted a steel event in Milan.
He warned that there is a persistent fundamental bias in Europe in favor of the interests of individual countries, in particular Germany. The President of the European Commission, Ursula von der Leyen, recently stressed that the course towards decarbonization remains unchanged. "I think this could lead to a reduction in our steel production in Europe. … We will have to take into account that the small capacity of[European]will not be sustainable in the long term," Marcegaglia said during the conference.
The EU's approach to industry, energy and defense policy in various countries is characterized by a pronounced emphasis on national interests. "I am struggling to see the possibilities of delegating them[the policies]to a supranational body or to create such a system," he added.
European industry should advocate a policy of convergence and demonstrate boldness in industrial strategies, emphasizing the crucial role of industry in economic development. Attention should be focused not only on subsidies; rather, it is important to pursue industrial policies that effectively meet the needs of the industry, encouraging investment in technology and creating a clear regulatory framework, Marcegaglia continued.
He cited the example of the CBAM regulation, which is characterized by uncertainty and lack of clarity, although it is scheduled to enter into force in January 2026.
He participated in the discussions of the EU Strategic Steel Dialogue. This serves as a "declaration of intent" and sets out the fundamental principles that should translate into concrete actions in the coming weeks, he said.
During the conference, Marcegaglia urged steel producers to be careful about excessive protectionist measures, which we are already starting to delocalize the processing industry. More and more customers can choose to manufacture their automotive components outside of Europe. Europe needs to rethink its position in the global steel industry in order to maintain and potentially increase its market share, especially in terms of product quality.
There are no winners in the trade war, Marcegaglia said. The increase in duties is likely to lead to higher domestic prices, which will eventually lead to higher costs for consumers. The economy is largely interconnected, and this feature is likely to persist.