01 May 2013

Steel there?

The European steel industry after the great recession

Giacomo Luchetta / Federica Mustilli / Lorna Schrefler / Felice Simonelli


CEPS Researchers Giacomo Luchetta, Federica Mustilli, Lorna Schrefler and Felice Simelli have published an article in the journal L’industria, 4, Il Mulino.

This paper provides an updated and extensive picture of the eu steel industry, and suggests evidence-based policy indications to foster the international competitiveness of eu steel makers. The never ending economic crisis started at the end of 2008 has been having a harsh impact on the steel industry. Despite some signs of recovery, most of the eu steel makers are still bogged down in the «Great Recession». Furthermore, steel production has been subject to structural changes over the last twelve years, mainly due to the increase in the Asian production, which posed a new and significant competitive threat to eu producers, whose production costs are higher than those borne by other international competitors. eu institutions and Member States still have policy levers for manoeuvre which could be used to provide cyclical and structural relief to this industry. Based on the findings provided in the sectoral analysis, three sets of policies are suitable to tackle some of the most crucial challenges for steel makers: access to raw materials, energy policies, and demand-side policies.

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