MEPs Bruno Tobback and Kathleen Van Brempt (S&D) have submitted a written parliamentary question to the European Commission, demanding safeguards that link public subsidies for the steel sector to job retention and decarbonisation investments. The question, filed on 8 April 2026, targets the growing gap between billions in state aid and the sector's failure to deliver low-carbon projects, while companies like ArcelorMittal plan to offshore thousands of European jobs.
The MEPs note that in the first six months of 2025, subsidies for Europe's steel industry grew by €500 million, reaching a total of €15.1 billion. They cite examples: ArcelorMittal received nearly €1 billion for its Dunkirk site, and Thyssenkrupp got around €2 billion from the German government for its tkH2Steel project. At EU level, the steel and metals action plan outlines support measures, including strengthened trade defences. Yet, according to the sector, only a few projects have materialised due to low steel prices, high energy costs, and insufficient demand for low-carbon steel.
(1) how the Commission will ensure sufficient capacity for EU low-carbon steel production to safeguard strategic independence, and what additional measures it will propose; (2) how it will tie public support to investments in local employment and decarbonisation; and (3) whether it will introduce claw-back procedures if companies that received subsidies offshore activities and cut European jobs, and where such procedures would apply.
The MEPs advocate for stricter conditionality on state aid, linking subsidies to concrete outcomes in jobs and green investment, and for mechanisms to recover funds if companies fail to deliver. This reflects a broader push within the European Parliament to ensure that public money serves both climate goals and industrial resilience.
The Commission must reply within approximately six weeks. Its answer will signal whether it supports tighter controls on steel subsidies or prefers to maintain flexibility for member states and industry. The response will be closely watched by steelworkers, environmental NGOs, and EU producers facing global competition.