This week we hear about the UK steel industry being decimated. It is suffering from cheap over production of steel from China and elsewhere. It is also suffering from artifically high energy costs as a direct result of the EU.
The EU has imposed additional costs on our energy production through a range of carbon taxes. It has also insisted on clean production methods. I guess the naive hope was that this would drive down the use of carbon. Of course that was always going to be a nonsense. We are part of the world economic community.
What this EU interference has done is to price domestic steel production out of business. Much of the production in the UK is from clean plants, with little transportation effort.
Instead, the production of steel will be carried out in China, from dirty, less well regulated plants and then transported around the world. This will almost certainly increase the use of carbon.
As world steel production capacity is reduced China will make a fortune and we will be left with no steel making capability. This is both a security threat and economic stupidity. How can it be in anyway sensible to price yourself out of a market because of ideology?
It is ironic to remember that in when French Foreign Minister Robert Schuman proposed integrating western Europe’s coal and steel industries in 1950, his ideas were set out in the Treaty of Paris the following year, and the precursor to the EU — the European Coal and Steel Community — was born.
Not a great example of EU thinking.
We must protect our industries from the burden of EU red tape and ideology based taxation.