Europe’s steel sector is pushing EU policymakers to include steel, especially low‑carbon steel, in an upcoming industrial strategy known as the Industrial Accelerator Act, even as disagreements over the plan’s geographic scope are delaying its formal launch.
The European steel association Eurofer warned on Thursday that the latest draft of the legislation appears to exclude steel from provisions designed to prioritise the use of locally made products when public funds are spent, a move the industry says could undermine investment and jobs.
The Industrial Accelerator Act is part of a broader push within the European Union to strengthen domestic manufacturing in strategic sectors such as batteries, electric vehicles, solar and wind energy, hydrogen production, and nuclear power. Under planned Made in Europe rules, public procurement and state support could give priority to goods manufactured within or close to the EU.
But Eurofer’s director general, Axel Eggert, said the latest proposals had “removed ‘Made in Europe’ requirements for steel”, jeopardising efforts to decarbonise the sector and compete with foreign producers. His comments reflect deepening concerns among steelmakers about global competition and market access.
“Countries including India, Indonesia, Vietnam and those in the Middle East and North Africa should be excluded,” Eggert said, arguing that these regions contribute to global overcapacity and lack robust decarbonisation standards. He suggested that only close partners such as the United Kingdom and Norway should be eligible under any local‑content rules.
Policy Delays and Divisions
The disagreement over local definitions has delayed the official presentation of the plan, originally expected this week but now postponed amid internal debates among EU member states. EU officials say the next target for unveiling the proposal is March 4.
Supporters of a narrow definition argue that a tightly defined local‑content preference will better protect European industries from cheaper imports and foster investment in green technologies. Critics, including some northern European economies, caution that overly restrictive rules risk deterring investment and raising costs, as globally integrated supply chains would be disrupted.
The push comes as European steel markets are showing signs of tightening. According to industry pricing data, domestic flat steel prices hit their highest levels since 2024, reflecting elevated demand for downstream sectors like automotive and construction amid trade policy shifts and carbon pricing mechanisms that affect import competitiveness.
Steelmakers have also been navigating broader global trade pressures. Data from trade analysts show that EU steel exports to the United States dropped by about 30% in the second half of 2025 compared with the previous year, as U.S. tariffs on steel and aluminium imposed since 2025 weighed heavily on transatlantic flows.
The issue has resonated beyond industry circles. Earlier this week, the UK business secretary urged the EU to avoid erecting trade barriers that could hamper integrated supply chains, while backing cooperation in areas like advanced technologies and climate‑related manufacturing.
Within the EU itself, member states are split on the future of industrial policy. Some, like France, have pressed for stronger domestic preferences, while others argue that protectionist measures could jeopardize investment and innovation by limiting access to global partners.
EU institutions, the European Commission, European Parliament and member-state governments, still need to finalize negotiations on the Industrial Accelerator Act before it can be adopted. How steel is treated in the final text will shape future investment flows and buying patterns for public spending across the bloc.
Industry groups argue that excluding steel from local‑content requirements could weaken Europe’s ability to modernize its industrial base, particularly as global rivals such as China and the United States deploy aggressive industrial strategies to support decarbonization and domestic manufacturing.
As EU policymakers prepare to revisit the draft text, the debate over the scope of Made in Europe rules reflects broader tensions between industrial protectionism and open, integrated supply chains, a central theme in European economic policy ahead of key elections and amid intensifying global competition.