Source: European Parliament
As acknowledged in the Steel and Metals Action Plan[1], the steel sector plays a vital role for the EU’s economic security and social stability. It is facing significant challenges, but several European instruments support its decarbonisation.
Around 10 large clean steel projects received public support, either via state aid or the EU Innovation Fund[2] to accelerate the steel sector’s transition.
The new Clean Industrial Deal[3] State aid Framework (CISAF) will further facilitate investments in industrial decarbonisation, including in the steel sector.
The European Globalisation Adjustment Fund[4] offers one-off re-active assistance in case of major restructuring events to support workers affected by restructuring in their job-transition.
The Commission proposed on 1 April 2025 to amend this regulation[5] to allow for earlier intervention before collective dismissals occur.
The European Social Fund Plus[6] supports skills development and training of workers and the targeted amendment proposed on 1 April 2025 is meant to encourage Member States to allocate more funds to ‘support adaptation of workers to decarbonisation’. The future European Fair Transition Observatory will also be instrumental in monitoring the employment impacts of the transition.
The Commission will consider introducing in the Industrial Decarbonisation Accelerator Act[7] sustainability and resilience criteria and minimum EU content requirements.
These aim to create lead markets for low-carbon industrial products, while aligning with other legislative initiatives and the EU’s international commitments.
Decisions in the area of nationalisation fall under the competence of individual Member States, provided they comply with EU competition rules.
- [1] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_805.
- [2] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02019R0856-20231121.
- [3] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52025DC0085.
- [4] https://employment-social-affairs.ec.europa.eu/policies-and-activities/funding/european-globalisation-adjustment-fund-displaced-workers-egf_en.
- [5] https://employment-social-affairs.ec.europa.eu/news/commission-proposes-broader-faster-eu-social-and-employment-funds-2025-04-02_en.
- [6] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=LEGISSUM:4536659.
- [7] https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=PI_COM:Ares(2025)3570423.