EU Weakens "Buy European" Steel Rules, Sparking Shockwave Among Industry Leaders
Economy / Finance

EU Weakens “Buy European” Steel Rules, Sparking Shockwave Among Industry Leaders

The steel sector has voiced strong opposition to the European Commission’s proposal to soften the “Buy European” rules that were designed to shield European industry. “Made with Europe is not an alternative to Made in Europe” said Marie Jaroni, head of Thyssenkrupp Steel, to the “Spiegel”. She warned that if the Commission were to extend the approach to all of the roughly 70 countries with which the EU has free‑trade agreements, the measure would become “devoid of substance and ineffective”. “Canada, the United States, China, India all trade and set local‑production rules, while Europe watches from the sidelines” she added.

The plan targets steel – a sector that already enjoys some protection from import tariffs. Under the latest draft, public procurement would only require that at least 25 % of the steel used be low‑carbon. Unlike aluminium or cement, the wording no longer explicitly demands that the steel be “Made in Europe”.

This move is part of a broader legislative package the Commission expects to present next week. The draft originally set quotas for strategic sectors such as steel, cement, batteries, solar technology, and the automotive industry. It stipulates that, for instance, at least five per cent of cement used in state‑tendered construction projects must be low‑carbon and produced within the EU. For the automotive sector, a minimum share of vehicles manufactured in Europe would be required for any state purchases or subsidies.

The draft has sparked fresh criticism. Chancellor Friedrich Merz (CDU) has proposed a reinterpretation of “Made in Europe” turning it into “Made with Europe” which would grant full recognition to countries with which the EU has trade agreements.