COUNCIL OF THE EUROPEAN UNION,update

 

Press material Monday, 13 April 2026

● Council of the EU   13/04/2026 23:59 | Press release | Council and European Parliament strike deal to protect EU’s steel industry from global overcapacity   Today, the Council presidency and the European Parliament have reached a provisional agreement on a regulation aimed at addressing the negative trade-related effects of global overcapacity on the EU steel market. The regulation will introduce a new framework to protect the EU steel sector from global excess production and trade diversion, while ensuring that the measure remains compatible with the EU’s international trade obligations and sufficiently flexible for economic operators, including downstream industries. It will replace the current EU steel safeguard measures, which are due to expire on 30 June 2026, thereby ensuring continued protection for the EU’s steel market without regulatory gaps. The new rules introduce a revised tariff-rate quota (TRQ) system designed to better address structural global overcapacity in the steel sector, including a significant reduction of import quotas and higher duties for imports exceeding those quotas. “The European steel industry is a strategic sector for our economy, our security and our green transition. Today’s agreement provides the EU with a stronger and more effective instrument to address global overcapacity while maintaining a rules-based approach and ensuring fair competition and long-term resilience for Europe’s steel producers and value chains.” — Michael Damianos, minister for energy, commerce and industry of the Republic of Cyprus Main elements of the agreement The provisional agreement maintains the core architecture of the Commission proposal while introducing several adjustments reflecting the goal to address structural global steel overcapacity while safeguarding the stability of EU supply chains. Tariff-rate quota system and carry-over The regulation introduces a revised tariff-rate quota (TRQ) system governing steel imports into the EU. The new system reduces the overall volume of steel import quotas by approximately 47% compared to the 2024 safeguard quotas (18.3 million tonnes of import volumes per year) and increases the out-of-quota duty to 50%. These measures are designed to discourage excessive imports while maintaining controlled market access for traditional suppliers. The agreement also clarifies aspects related to the management of quotas and their allocation among exporting countries. The agreement provides that, during the first year of application, unused import quotas may be carried over from one quarter to the next for all product categories, in order to provide flexibility for economic operators and support supply chains . From the second year onwards, the Commission will determine whether such quarterly carry-over should be allowed for specific product categories, based on certain criteria. These include factors such as the level of import pressure, the rate of quota utilisation and the availability of supply for downstream industries, with a view to preventing market disturbances while ensuring adequate supply. 'Melt and pour' requirement To avoid circumvention and increase supply chain transparency, the regulation introduces provisions concerning the 'melt and pour' principle, which identifies the country where the steel was originally melted and poured – that is, the country where the steel was first produced in liquid form in a furnace and then cast into its first solid shape. Under the compromise reached by the co-legislators, the country where the steel is melted and poured will be used as one of the factors when allocating quotas to third countries. This approach helps address global overcapacity while ensuring that the regulation remains compatible with existing trade rules, including rules of origin, and with the EU’s international commitments under the WTO and its free trade agreements. Within 2 years, the Commission will have to assess whether to designate the country of melt and pour as the basis for country-specific tariff quota allocations and, if necessary, will present a new legislative proposal to that effect. Product scope and review The regulation maintains a product scope broadly aligned with the existing EU steel safeguard measures, ensuring legal certainty and administrative manageability. At the same time, the co-legislators have agreed on a reinforced and time-bound review mechanism: within six months of the entry into force of the regulation, the Commission will assess whether the scope should be extended to cover additional steel products, including tubes and pipes, certain types of wire and forged bars, and may propose legislative amendments where appropriate a second review will take place within 12 months, allowing the Commission to assess whether further adjustments are needed, in particular with regard to products made of or containing a significant amount of steel, in light of market developments and possible risks of circumvention. Consecutive scope reviews will take place every 2 years thereafter. The regulation introduces monitoring, reporting and review provisions to ensure that the instrument remains effective and proportionate over time. The Commission will regularly assess the functioning of the measure and may propose adjustments where necessary in response to market developments or evolving global overcapacity conditions. Steel imports from Russia In a joint declaration accompanying the regulation, the co-legislators and the Commission reaffirm their commitment to reducing economic dependencies on Russia, emphasising ongoing efforts to diversify steel imports, with the gradual phase-out of Russian steel products. Next steps The provisional agreement will now be submitted to the member states’ representatives in the Council and to the European Parliament for endorsement. Once formally adopted by both institutions, the regulation will apply as from 1 July 2026. Background Steel is an essential material for the EU economy, including for its green transition and strategically important sectors such as defence. The EU steelmaking industry is the world's third largest producer, directly employing around 300,000 people and sustaining regional economies across member states. This key industry is currently facing significant pressure from unsustainable levels of global overcapacity, which is projected to grow to 721 million tonnes by 2027, more than five times the EU's annual consumption. This overcapacity, combined with trade-restrictive measures from third countries that limit imports into their markets, has made the EU market the primary recipient of global excess steel. This has led to increasing imports, low-capacity utilisation (67% in 2024), high EU manufacturing costs, and ultimately threatens the industry's long-term ability to invest in decarbonisation. To address these critical challenges, including the loss of some 65 million tonnes of capacity and up to 100,000 jobs since 2007, the Commission announced its intention to prepare a new steel measure in March 2025.   Steel overcapacity: Council adopts mandate on new rules to protect EU steel industry from global overcapacity (press release, 12 December 2025) Council mandate for negotiations with the European Parliament Commission’s proposal on the regulation European steel and metals action plan (European Commission   Visit the website ● General Secretariat of the Council   Think Tank reports on Russia’s war of aggression against Ukraine   The Delta battlefield system being the beating heart of Ukraine’s warfighting capabilities, how Ukrainian media report on public opinion in wartime, how the Iran war highlights Ukraine’s rapid rise to drone superpower status and Ukraine’s post-war recovery with a US-Ukraine free trade agreement are some of the topics discussed in this update.   Read full post ● European Council   14/04/2026 15:11 | Press release | Informal meeting of heads of state or government of 23-24 April 2026 - Invitation letter by President António Costa to the members of the European Council   Dear colleagues, I would like to invite you to our informal meeting of Heads of State or Government on 23 and 24 April. President Christodoulides will be hosting us on this occasion in Lefkosia and Agia Napa. On 24 April, after our meeting at 27, we will also get together with key regional partners to discuss the situation in the Middle East. The focus of our informal European Council meeting will be twofold: we will address the challenging geopolitical environment and Europe’s response to it, and we will also provide political guidance for the work on the Multiannual Financial Framework (MFF) for 2028-2034, to prepare the ground for an agreement by the end of this year. We will begin our discussions over dinner on 23 April by hearing from President Zelenskyy regarding Russia’s ongoing war of aggression against Ukraine. We will then address the conflict in Iran and the Middle East, which poses serious challenges to the European Union. First, we must discuss our response to this rapidly evolving situation. This includes Europe’s contribution to de-escalation and peace in the region, as well as to the freedom of navigation. Furthermore, the effects of high fossil fuel prices are already visible in the everyday lives of our citizens and companies. Given the potential further negative economic consequences of a prolonged conflict, we will discuss the instruments at our disposal, building on the decisions taken at the March European Council, and on measures proposed by the Commission in follow-up to them. Lastly, the Union’s readiness to respond to the challenging geopolitical and security environment will also be part of this discussion. This could include aspects related to Article 42(7) TEU, in light of ongoing work. In our working session in the morning of Friday 24 April, we will address the next MFF, a discussion we had foreseen for March, but had to postpone. It has since only become more urgent. We need to have an open discussion about how we can match our ambitions with the appropriate level of financing, including about the importance of New Own Resources. At the same time, I would like us to discuss the contribution of the new EU long-term budget to our competitiveness agenda, because it will be the main instrument at our disposal for common strategic action. We will come back to the MFF regularly during 2026 to create the conditions for a timely agreement. Following our meeting of Heads of State or Government, we will continue our discussions on current events in the Middle East over an informal working lunch with leaders from the region. This will provide an opportunity for an exchange of views on shared challenges, but also on emerging opportunities for cooperation. Our meeting in Cyprus comes at a crucial moment for the European Union’s agenda: it will allow us to revisit the implementation of the decisions that came out of the March European Council, namely in the field of energy; it will provide a moment for coordination and further political guidance in light of the ongoing crisis in the Middle East and its impact on European economies; and it will be an important milestone on the way to an agreement on the next Multiannual Financial Framework. I look forward to seeing you in Cyprus. Invitation letter   Visit the website