Europe should increase protection for its steel producers, said the head of Moravia Steel

Prague – Europe must protect its steel production, otherwise it risks undermining its efforts to strengthen military capabilities. In an interview with Bloomberg, the chairman of the board of the largest Czech steel producer Moravia Steel Petr Popelář stated this. According to him, steelworks and other metal processing companies in the European Union are struggling with excessive regulation, high energy costs, and unfair competition from abroad. He therefore called for the introduction of tariffs and quotas and for greater public funding to help this sector meet environmental goals.

“It should be in Europe’s interest to maintain as much steel production capacity as possible so that strategic sectors, such as defense and infrastructure, are not dependent on imports from places that are not our geopolitical allies,” Popelář said.

Moravia Steel has 15,000 employees in Central Europe and is the last primary steel producer in the Czech Republic. However, the company’s financial outlook remains unfavorable, even though it recorded a slight profit last year due to “drastic” cost reductions, Popelář said. This year, the company postponed most of the planned investment of one billion euros (24.8 billion CZK) for the transition of the main division of Třinecké železárny from coal to electricity, which is required by the rules of the so-called EU Green Deal. Without further state subsidies and regulatory relief from the EU, Moravia Steel could be forced to gradually cease primary production and import materials from abroad, he warned.

Popelář pointed out that declining production in Europe could undermine the continent’s efforts for greater self-sufficiency while increasing defense spending. “Europe may be the only market in the world that cannot adequately protect its steelmakers,” Popelář said. “You can buy steel anywhere, but only until a military conflict actually breaks out.” He emphasized that steel is indispensable. It is needed everywhere and is a matter of national security. “If we have to rely on imports from non-European countries, it will be like shooting ourselves in the foot – actually in both feet,” he added. (June 26)