Hereu advocates competitive energy prices, more effective trade control and new lines of financing for the viability of the European steel sector

The Minister for Industry and Tourism, Jordi Hereu, appears after the Ministerial Conference on Steel held in Paris

The Minister for Industry and Tourism, Jordi Hereu, has participated in Paris in the Ministerial Conference on Steel organised by the French Minister of Industry and Energy, Marc Ferraci, together with his Italian counterpart, Adolfo Urso, to address the future of the steel industry in Europe. The meeting was also attended by Poland, Luxembourg, Slovakia, Greece, Austria, Hungary, Romania, Belgium, as well as the European Commission and the Polish Presidency of the Council of the European Union (EU).

At the meeting, Jordi Hereu considered it essential to have competitive energy prices and a stable supply, for which he proposed deepening the integration of the Single European Energy Market.

The Minister for Industry and Tourism pointed out that the European steel industry is facing substantial investments to reduce its carbon footprint. For this reason, he advocated providing financial instruments for Community support beyond 2026, to ensure that the transformation of the sector is viable and fair. He also highlighted the role that European Investment Bank funding can play in facilitating project financing.

In addition, the Government of Spain considers it essential to encourage public procurement of green steel across the EU, in order that obligations are established, for example, in infrastructure and public works, for certain percentages of the steel used to come from zero-emission or low-carbon technologies.

Hereu recalled that the current safeguard measures will be strengthened and new instruments will be analysed to protect European steel after 2026. He also advocated for the effective implementation of the Carbon Border Adjustment Mechanism (CBAM), so that steel exporting countries comply with equivalent decarbonisation requirements and avoid practices that circumvent this mechanism.

Jordi Hereu highlighted the value of the initiatives launched by his department, such as the PERTE for Industrial Decarbonisation, whose objective is to support industry in its transition towards more environmentally friendly models and processes, and to contribute to the goal of climate neutrality by reducing emissions.

A strategic sector

The steel sector is strategic both in terms of its contribution to GDP and employment, and in terms of strategic autonomy, as steel is the raw material for many other key industrial sectors such as automotive, aeronautics and railways.

Steel is used in a wide variety of fields, including transport, buildings, cars, energy and water production and distribution, gas pipelines, food, capital goods, machinery, tools, aeronautics, defence, space and electronics.

The Spanish steel sector represents 4.6% of industrial GDP, employs around 60,000 workers (direct and induced employment) and has an annual turnover of €14 billion. There are 22 steel-making plants and 50 rolling and primary processing facilities. The plants are spread over 11 Autonomous Communities, although there is a higher concentration in the Cantabrian coast area, especially in Asturias and the Basque Country.

Non official translation