EU fails to curb steel industry
Wednesday 26 October 1994
British Steel warned that the end of the Commission's steel plan would leave open too many steelmaking plants that should have been closed down. A spokesman for the company said that the industry, buffered at present by a recovery in prices, would face a repeat of its problems with overcapacity within in a few years.
The Commission put forward a plan two years ago for capacity cuts in the industry in return for financial assistance in restructuring and a more permissive attitude towards state aid for the sector.
The state aid has in many cases gone ahead, but the required 19 million tonnes of capacity cuts have not been forthcoming. The Commission said it would not demand that companies paid back state aid that has been granted to help cushion losses, as this would penalise workers unnecessarily. It also said it would end quotas on imports of steel from the Czech Republic and Slovakia.
The Commission has also decided to authorise a German government plan to give DM910m ( pounds 373.64m) in aid to Eko Stahl, an eastern German steel company that is to be privatised and sold to Belgium's Cockeril Sambre.
Unsubsidised private sector producers are highly critical of the way the Commission handled the deal, arguing that it should have pushed harder for capacity cuts and taken a tougher stance against state aid. About pounds 6bn worth of subsidies have been approved in the past two years.
British Steel has already brought a case in the European Court of Justice against the Commission for authorising government subsidies to Italian and Spanish steelmakers. The company argues that it has done its fair share of rationalisation and that continued aid for uneconomic producers distorts the marketplace.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Rashida Jones speaks out against male-centric porn saying 'women should have sex and feel good about it'
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...