European industry warned of a new wave of layoffs amid competition with China
European industry could lose about 300,000 jobs in 2026 due to high energy costs, weak competitiveness and growing dependence on Chinese manufacturers. Industry companies are demanding urgent action from the EU to protect production and investment.
This is reported by The Guardian with reference to the EUROMETAL industry association, which represents distributors, traders and service companies in the metals sector in Europe.
The association warns that the current trade model is gradually pushing some production out of Europe. According to EUROMETAL, Chinese companies gain an advantage thanks to lower production costs, cheaper energy and differences in trade and carbon regulation.
EUROMETAL President Alexander Julius said that China is increasingly integrating into the supply chains of European industry. Of particular concern is the import of finished products and components made of metals, chemical products and other materials on which a large part of industrial production depends.
European manufacturers talk about unequal conditions
One of the main complaints of the European industry concerns the difference in regulation of imports of raw materials and finished products.
Steel imported into the EU is subject to quotas, trade restrictions and carbon payments under the CBAM mechanism. At the same time, finished products made outside the EU from the same steel can in some cases enter the European market without a similar burden.
EUROMETAL believes that this difference creates a competitive advantage for producers from third countries. European enterprises simultaneously bear the costs of decarbonization, compliance with environmental standards and more expensive energy.
The association warns that if this situation persists, it could lead not only to personnel reductions, but also to factory closures, relocation of production outside the EU and loss of technological competencies.
Energy in Europe remains significantly more expensive
High energy costs remain another key issue. European Commission President Ursula von der Leyen at the end of August acknowledged that energy prices in Europe are about two to three times higher than those in the US and China.
According to her, Europe's former economic model, which relied on cheap imported energy, open global trade and expanded access to the Chinese market, no longer works in its previous form.
The EU also faces a growing trade imbalance with China. Over the past five years, Chinese imports to the EU have increased by about 45%, while European exports to China have been declining.
Industrialists are going to protest in Brussels
On September 7, EUROMETAL together with dozens of European industry organizations is holding the "European Convoy for Industrial Competitiveness" in Brussels. Representatives of manufacturers, distributors, service centers and small and medium-sized businesses joined the action near the European Commission headquarters.
The organizers registered the participation of 68 organizations, over 200 industry representatives and 15 trucks. Participants plan to carry ten symbolic coffins near the European Commission building, which are meant to represent production capacities, jobs and industrial competencies that Europe risks losing.
Among the business demands are reducing energy costs, equal trade conditions for European and foreign manufacturers, protecting investments and reducing strategic dependence on suppliers from third countries.
EUROMETAL stresses that the estimate of about 300,000 jobs is a projection of potential losses in 2026 if current trends continue, not the number of already announced layoffs.
Based on materials from: The Guardian, EUROMETAL, EUROMETAL
