Stéphane Séjourné's blueprint
At a press conference on March 19, 2025, Executive Vice-President Stéphane Séjourné outlined an Action Plan on Steel and Metals designed to address Europe's steel industry's twin challenges: soaring electricity prices and global overcapacity pressures, particularly from Asia. He framed the situation as a stark choice between accepting Europe's declining competitiveness — risking industrial dependency — or preserving this foundational industry critical for construction, automotive, and defense sectors.
Concrete measures for safeguarding and boosting competitiveness
Séjourné announced an imminent reinforcement of the existing safeguard clause on steel imports, targeting up to a 15% reduction starting April 1, 2025. Recognizing current protections as insufficient, he pledged a more effective instrument by late 2025 when the current clause expires. This defense approach extends to aluminum with planned investigations potentially leading to equivalent safeguards.
The action plan also endorses reforming the Border Carbon Adjustment Mechanism (BCAM) within the year, focusing on export rules, anti-circumvention, and product scope expansion — reflecting industry demands to level the international playing field. Adjusting rules of origin is intended to close regulatory loopholes that allow foreign steel to masquerade as European-made, thereby tightening market integrity.
Driving demand and green transition
On demand, the plan envisages incentives and mandates for minimum use of clean, EU-produced steel in public procurement, pushing market preference toward domestic and decarbonized steel products. It raises the prospect of imposing recycled steel usage to curb scrap exports, emphasizing energy savings and resource self-sufficiency.
For supply, strategic raw materials projects will be launched to optimise essential inputs. The ecological transition is supported through relaxed state aid rules, competitive electricity prices secured via long-term contracts, hydrogen investments linked with nuclear power, and a €150 million funding boost for decarbonization R&D in 2026–27. Notably, Séjourné declared the creation of a European Decarbonization Bank to finance this transformative push.
Stakeholder perspectives and policy cleavages
These proposals increase EU-level regulatory intervention and market protection, reinforcing European sovereignty in steel production amid global competition. Producers stand to benefit from stronger import restrictions and financial support for green technologies but face heightened compliance demands. Consumers might see subtle price impacts due to supply constraints but benefit from supply security and environmental gains. National authorities gain influence through coordination of raw material projects and state aid approvals. NGOs likely welcome environmental commitments but remain watchful on energy and state aid implications.
In sum, this action plan represents Séjourné's position advocating a robust, multifaceted approach prioritising industrial preservation, ecological innovation, and market safeguarding—highlighting Europe's intent to assert strategic control in steel amidst global uncertainty.
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