Steel is a strategic pillar of Europe
CoR members emphasized that the steel and steel industry has been central to European integration since the early days. In addition to its direct economic contribution, this sector supports the automotive, defense, construction, and energy industries, while providing high-quality employment and supporting regional economies across the EU. Local leaders warned that the weakening of this industrial base would undermine not only production capacity, but also Europe's strategic autonomy and long-term social stability.
Energy costs undermine competitiveness
High energy prices have been identified as the most crucial factor undermining the competitiveness of European steel and metal producers, especially as the sector undergoes a decarbonization process. CoR members noted that electricity prices in Europe are currently almost three times higher than in the United States, and this gap has already led to plant closures and delays in making important investment decisions.
Local leaders argued that without urgent reform of the EU energy market and faster adoption of clean technologies such as green hydrogen, Europe risks losing industrial capacity in favor of regions with lower energy costs. They stressed that access to affordable, safe and low-carbon energy remains fundamental to achieving a green transition while maintaining production in Europe.
Trading pressure and carbon leakage risks
In addition to energy costs, CoR members highlighted growing pressures from global competition, including trade conflicts, unfair trade practices, and ongoing global overcapacity in steel production. They warned that this dynamic accelerates carbon leakage as companies move production to countries with less stringent climate regulations.
To counter these risks, regional leaders have called for stronger EU trade protection instruments and a strengthened Carbon Boundary Regulation Mechanism (CBAM). They also stressed the need to limit scrap metal exports in order to protect strategic raw materials and preserve
