Riegel/Strasbourg, 14 November 2024 – The Gerber Group warns Members of the European Parliament against supporting the proposed EU Steel Action Plan, which—despite its dramatic rhetoric—would primarily benefit large multinational steel producers at the expense of millions of small and medium-sized enterprises (SMEs) across Europe.
Proposed EU Steel Action Plan Threatens SMEs and Millions of Jobs
“Once again, the loudest lobby wins – not those who actually need support,” says Thorsten Gerber, CEO of the Gerber Group, an international SME trader of stainless steel and aluminium. “Steel giants are calling for subsidies, tariffs, and exemptions, even while increasing dividend payouts and posting record EBITDA gains – especially during the pandemic and energy crisis years.”
Despite their claims of crisis, EU steel producers have profited handsomely in recent years, aided by Brussels’ protectionist measures and billions in public subsidies. Meanwhile, SMEs in the processing and consuming industries suffer the consequences: rising raw material costs, complex CBAM bureaucracy, and declining global competitiveness.
“Imbalance in policy attention is not only unfair, it’s economically reckless”
Gerber highlights that the EU’s 303,000 direct jobs in steel production are often prioritized over the more than 11 million jobs in downstream metal industries. “This imbalance in policy attention is not only unfair, it’s economically reckless,” Gerber adds.
He urges MEPs to rethink the direction of EU industrial policy. “Protectionist measures like CBAM, tariffs, and the proposed Steel Action Plan don’t punish foreign competitors – they penalize European businesses and consumers. SMEs are losing billions in revenues that could otherwise be invested in innovation, sustainability, and jobs.”
The Gerber Group calls on Parliament to stand with Europe’s real industrial backbone – its SMEs – and not to reward the overreach of steel industry lobbyists.
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