The association stated that if the regulation is approved on the 25th of this month, it would send a negative signal to investors at a critical time for Europe.
In an assessment submitted by UNESID to the Spanish Ministries of Industry and Economy, attention was drawn to the fact that the European steel sector is planning historic-scale investments to decarbonize production. The statement emphasized that it is vital to send a clear signal that strategic demand in areas such as infrastructure, defense, automotive, and clean technologies will support production within the Union.
The association warned that if steel is excluded from priority mechanisms, investments could slow down, industrial employment could be adversely affected, and the European Union’s dependence on third countries with lower environmental standards and strong public subsidies could increase. The statement stressed that steel is a key sector for economic security.
Highlighting that steel is a fundamental input in the construction of critical infrastructure, defense equipment, energy grids, transportation systems, and zero-emission technologies, UNESID underlined that any potential loss of domestic production capacity is not only an industrial policy issue but also a matter of economic security and strategic autonomy.
UNESID CEO Carola Hermoso stated that Europe cannot pursue strategic autonomy while weakening its industrial base. She warned that without strong and concrete demand for steel produced in Europe, the decarbonization process would slow, investments would be delayed, and industrial employment would be at risk.
The statement noted that the Spanish and European steel sectors are undergoing the most comprehensive transformation in their history to reduce emissions and maintain competitiveness, and that investments worth billions of euros are only possible with regulatory clarity and a reliable demand environment.
In this context, UNESID called for genuine priority to be given to European-origin products, limited to steel produced within the European Economic Area. The association also proposed that EU origin and carbon footprint criteria be applied together in public procurement and programs covering strategic sectors.
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