Steel titan ArcelorMittal finds itself back in the political spotlight
French Political Controversy: Nationalizing ArcelorMittal or Sticking to Reindustrialization Efforts?
In the bustling town of Narbonne, Marine Le Pen raised a contentious issue on May 1st, warning of a potential "social bloodletting" and accusing the government of being economically inept and dishonest about revitalizing the country's industry. While the left side of the political spectrum alleges that the government has been fooled by ArcelorMittal, the steel giant, they demand nationalization and slam the administration for distributing public funds without conditions.
: Is it Time to Nationalize? Balancing Economic Factors and National Sovereignty As the ArcelorMittal debate – following the announcement of 634 job cuts in France – unfolds, the government confronts accusations of impotence.
"Frustration and Apprehension Galore"
The idea of nationalizing ArcelorMittal, finds Industry Minister Marc Ferracci, a "poor solution." Meanwhile, Bercy whispers "shortsighted" in the background. "What's the point of embalming a factory that would still be incapable of selling its production, turning the industrial park into an amusement park," complains a ministry source.
"There's frustration and, above all, apprehension about the future," elucidates Patrice Vergriete, mayor of Dunkirk, to our microphone on Friday. The local official and former minister expresses concern about the need for clarity on conflicting positions. He references the EU's recent endorsement of a European steel strategy, which all parties acknowledge as advantageous. However, he expresses disappointment over the implementation timeline. He advocates for holding a high-level meeting involving Commissioner Stéphane Séjourné, ArcelorMittal, local elected officials, the State, and union representatives, to discuss each party's stance. Additionally, he requests announcements on the schedule from both the EU and ArcelorMittal, if the steel plan appears suitable for investments in Europe.
"Rapid Solutions are not always Possible"
For the executive, everything revolves around the European level. Protecting French steel primarily safeguards the EU market. No more quotas, no more taxes on imports... "I'm working on the solutions," insists the minister. Ferracci is scheduled to meet with Commissioner Stéphane Séjourné on May 5th to move forward on the file and further protect the struggling steel sector against Chinese competition.
The left assesses the situation with caution. They express concern over the workers' anxiety but refrain from immediate pressure. Marc Ferracci, however, acknowledges that swift solutions are not always feasible.
At the European level, the global steel giant has been applying pressure on the European Commission, urging an immediate implementation of its support plan for the steel sector. This impatience is met with some irritation in Brussels.
At the time of the plan's presentation, everyone remained tight-lipped about its content or implementation schedule, notes the European Commission. Commissioner for Industry, Stéphane Séjourné, has argued that he has taken up the entirety of ArcelorMittal's demands in the proposed measures.
A Buffer Clause Until Mid-2026
The plan includes a protective measure against the influx of low-cost steel, particularly from China, with a safeguard clause introduced on April 1st and set to last until mid-2026. Other elements of the support plan, however, require more time, admits the commission. Low-cost energy, a prerequisite for electrifying blast furnaces, does not emerge overnight. Nuclear reactors, for instance, take a significant amount of time to construct. And as for reviving industrial orders for steel-intensive sectors like automobiles, that would necessitate a recovery in sales, which is not currently trending in the European market.
- The left side of the political spectrum accuses the government of being dishonest about nationalizing ArcelorMittal.
- Patrice Vergriete, the mayor of Dunkirk, advocates for a high-level meeting involving various parties to discuss conflicting positions on the steel sector.
- The European Commission has a proposed measure in place to protect the struggling steel sector against Chinese competition, including a safeguard clause till mid-2026.
- The timeline for implementing other elements of the support plan for the steel sector, such as the provision of low-cost energy, requires more time, according to the European Commission.
