27 November 2024 – In the fight against the escalating influence of the EU steel lobby, Thorsten Gerber, CEO of the Gerber Group, has once again met with members of the European Parliament and called for a restriction of the power of steel manufacturers in the EU and a level playing field for SMEs. And the EU steel industry has fired up the propaganda machine and is trying to push through its Steel Action Plan.
Massively restricting the power of the EU steel lobby – in the fight for a level playing field for SMEs
Yesterday, Tuesday, the Stainless Espresso was cancelled for once. Instead, the Gerber Group and Stainless Espresso team travelled to the European Parliament to fight for the continued existence and future of small and medium-sized enterprises. In detailed discussions with several Members of the European Parliament (MEPs), Thorsten Gerber, CEO Gerber Group, drew attention to the current concerns and hardships of SMEs and their millions of employees.
Steel lobby with too much influence on legislation in the EU
The overwhelming influence of multinational steel manufacturers and their lobby organisations on legislation in the EU was one of the central topics. In particular, the dangers posed to SMEs by the Steel Action Plan propagated by the manufacturers.
Significant reduction in bureaucracy and market protection
But also the high costs incurred by SMEs due to excessive bureaucracy, the Carbon Border Tax CBAM and other new market protection measures, which jeopardise and destroy the competitiveness of the backbone of the European economy.
Thorsten Gerber, CEO of the Gerber Group, said yesterday: ‘If even the supposedly SME-friendly industry associations are dominated and led by CEOs of steel mills, then it’s no wonder that nobody represents the interests of us small and medium-sized enterprises anymore.’ He continued: ‘We entrepreneurs from the SME sector must therefore take our future into our own hands and stand up for our companies and employees and defend ourselves against the large corporations and the steel oligopoly.’
EU steel industry: propaganda machine is running
The EU steel industry’s propaganda machine is running at full speed. For several months now, the powerful steel lobby has been trying to push through its Steel Action Plan with the help of the EU Parliament and the Commission. However, this is not about making it greener and cleaner, but only about even more market protection and billions more in subsidies from Brussels and the member states.
Steel manufacturer in the deepest crisis for years?
The choreography is simple. After EU steel manufacturers were able to generate what were probably the highest sales and presumably also profits in recent decades in 2021, 2022 and 2023, everything has now allegedly slipped back into a huge crisis. According to the steel lobby, the valley of misery has never been deeper.
A few parliamentarians who were more than friendly to the steel lobby then called for a European steel pact. This steel pact was of course taken up by the lobby. But the Commission and various parliamentarians also subsequently called for a Steel Action Plan for the EU. The final highlight was a EUROFER PR event in Parliament on 20 November 2024 entitled ‘Ironing out a Steel Action Plan for a green transition made in Europe’.
Is there really a threat of job cuts in steel production?
Germany’s largest steel manufacturer had already threatened to scrutinise its investments in green steel production back in October. In November 2024, high write-downs pushed an otherwise good EBITDA result into the red. Now, in line with the choreography, the corporation wants to lay off or outsource several thousand employees – but there does not appear to be a concrete plan for this.
Will green steel projects be delayed despite subsidies already paid?
At the same time, another major steel manufacturer in Europe is stepping in to provide PR support and announcing that its green investments will be postponed until the CBAM market protection measure has been turned into an effective tool, despite subsidies of around 850 million euros already having been paid.
Steel lobby is the biggest threat to SMEs in Europe
It is therefore more than obvious that the aim here is to exert pressure on political decision-makers with a flood of threats and bad news. This is dangerous and undemocratic behaviour on the part of the steel lobby, which, if the EU parliamentarians give in to this pressure, will cause enormous damage to the economy in the European Union and in particular to small and medium-sized enterprises.
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