Luxembourg’s Deputy Prime Minister, and Minister of the Economy, Étienne Schneider, has demanded more concrete steps towards revitalising manufacturing in the steel sector and implementing the European Plan of Action in that regard, during a meeting on Wednesday, 27 May on European industries.
He said: “Industry is not a sector belonging to the past. Rather, it is a modern and promising sector. There is no strong economy, without a strong industrial base.”
The European Commission has set up a new political forum – “High Level Group on Energy Intensive Industries” in order to strengthen competitiveness of these sectors throughout Europe. Representing steel, chemical products, and even non-metallic mineral products, like cement, the combined share of the sectors totals 23% of the gross value added to the manufacturing industry in the EU.
Chaired by the European Commissioner for Industry and Businesses, Elzbieta Bienkowska, the new Group brings together policy-makers from seventeen different Member-States, including Germany, France, Italy, Belgium and Luxembourg, the most important representatives of the energy sectors, both at an employer and union level, as well as NGOs, such as “Climate Action Network”.
During the meeting, Minister Schneider stressed the urgency of taking concrete action at European level to strengthen the industrial base, “We must be ambitious in our approach. Our companies expect us to take concrete action and that they be provided with a clear and stable legal framework.”
He also highlighted the importance of the rigorous implementation of existing measures, notably the “steel” plan of action, adopted in 2013 by the European Commission, saying: “Our work on this plan of action is not finished. In 2014, the European Commission concluded that only half of the foreseen measures had been implemented. What about the other measures? Have the measures taken on, had the desired effects on manufacturing and production in Europe?”
The European manufacturing industry is in a critical situation. In recent years, the share of industry contributing to employment and to European GDP, has decreased significantly, from 20% of GDP in 1990 to 15% today. The EU-based industries also face challenges related to energy costs – the gas prices are double that of the US, for example. In addition, the industry fears a risk of relocation arising from the gradual auctioning of emission allowances and the capping of CO2 emissions.
Photo by Geoff Thompson
