Executive Vice-President Stéphane Séjourné, in a written answer on 15 June 2026, defended the Commission's approach to supporting the European steel sector while acknowledging that EU state aid rules do not allow claw-back of subsidies when beneficiaries offshore activities and cut European jobs. The answer, responding to a parliamentary question from S&D MEPs Bruno Tobback and Kathleen Van Brempt, signals the Commission's reliance on a mix of financial instruments and trade measures to drive decarbonisation, but leaves unresolved the question of how to prevent public money from funding job losses abroad.
The question, submitted on 8 April 2026, noted that subsidies for Europe's steel industry had grown by EUR 500 million in the first half of 2025 to reach EUR 15.1 billion, citing examples such as ArcelorMittal's nearly EUR 1 billion in subsidies for its Dunkirk site and Thyssenkrupp's EUR 2 billion from the German government for its tkH2Steel project. The MEPs pointed out that despite this support, few projects have materialised due to low steel prices, high energy costs and insufficient demand for low-carbon steel, and that ArcelorMittal plans to offshore 5,600 European jobs.
the Clean Industrial Deal, the Steel and Metals Action Plan, financial support under the Innovation Fund and Just Transition Fund, and the proposed Industrial Accelerator Act which would mandate minimum shares of low-carbon steel in automotive and construction. He noted that state aid approval is conditioned on greenhouse gas emissions reductions, and that the Clean Industrial Deal State Aid Framework allows Member States to include social or employment conditions. However, he stated bluntly that the legal basis for state aid control "does not allow" making aid conditional on claw-back procedures when beneficiaries offshore activities and cut European jobs. Under the CISAF, public support can only incentivise investment in the EEA rather than outside it by covering the funding gap.
The answer confirms a policy orientation that favours incentivising domestic investment over penalising offshoring, a stance that may reassure steel companies but frustrate labour advocates. Institutional follow-up is expected as the Industrial Accelerator Act and the replacement of steel safeguards proceed through the legislative process, with the Commission likely to face continued pressure from the European Parliament to strengthen conditionality.
Stakeholder impact - Steel producers: Gain continued access to substantial subsidies without binding obligations to maintain European employment, but face mandatory low-carbon steel quotas in key sectors under the IAA. - EU workers and trade unions: Left exposed to offshoring risks as the Commission admits it cannot claw back aid; reliance on voluntary Member State conditions offers uneven protection. - National governments: Retain flexibility to design aid measures with social conditions under CISAF, but lack EU-level enforcement tools to prevent job cuts. - Taxpayers: Finance EUR 15.1 billion in subsidies with limited guarantees that public money translates into local jobs or completed decarbonisation projects.
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