The EU’s decarbonisation strategy, comprising ideological and somewhat unrealistic targets, could lead to a long-term decline, particularly, in flat steel production, Antonio Marcegaglia told Kallanish during last week’s Made in Steel event in Milan.
He warned that a persistent fundamental bias exists in Europe that favours the interests of certain countries, notably Germany. European Commission President Ursula von der Leyen recently emphasised that the trajectory towards decarbonisation remains unwavering. “I think this could lead to a downsizing of our steel production in Europe … We will have to take into account that a little bit of [European] capacity will not be sustainable in the long term,” Marcegaglia stated during the conference.
The EU’s approach to industrial, energy, and defence policies across various nations is characterised by a pronounced emphasis on national interests. “I struggle to see the possibility of delegating them [the policies] to a supranational body or to create a system,” he added.
The European industry must advocate policy cohesion and demonstrate boldness in industrial strategies, emphasising the critical role that industry plays in economic development. The focus should not solely be on subsidies; rather, it is essential to implement industrial policies that effectively address the industry’s needs, facilitating investments in technology and establishing a clear regulatory framework, Marcegaglia continued.
He highlighted the example of the CBAM regulation, which is characterised by uncertainty and a lack of clarity, although it is scheduled to be implemented in January 2026.
He has engaged in EU strategic steel dialogue discussions. This serves as “a declaration of intent” and establishes a foundational reference framework that should translate into concrete actions in the coming weeks, he said.
During the conference, Marcegaglia warned steelmakers to show caution regarding excessive protectionist measures, which are already initiating the delocalisation of downstream industry. More customers could opt to manufacture their car components beyond European borders. Europe must reassess its position in the global steelmaking industry to maintain and potentially increase its market share, particularly in terms of product quality.
There are no winners in the trade war, Marcegaglia asserted. The escalation of duties is likely to lead to higher domestic prices, ultimately resulting in increased costs for consumers. The economy is significantly interconnected, a characteristic that is likely to persist even in the face of imposed duties.
The flows are unlikely to undergo significant transformation, as the economy encompasses not only the trade of goods but also services and finance. This includes treasury bonds held by each country, which will serve to mitigate the impact of protectionism.
In 2024, Marcegaglia group posted revenue of almost €6.9 billion ($7.7 billion), slightly down from €7.8 billion in 2023. Volumes, mostly in line with 2023, reached 5.7 million tonnes.
Natalia Capra France
