10 Mar 2026

Stainless News: IAA Draft Raises Concerns for SMEs and EU Steel Industry

Image Source: public-buyers-community.ec.europa.eu

A newly leaked draft of the Industrial Accelerator Act (IAA) highlights regulatory provisions that primarily affect large European corporations, small and medium-sized enterprises (SMEs), and several industrial sectors. The proposal also introduces new rules related to procurement procedures, ownership structures, and environmental standards for steel production.

Procurement Rules and Potential Impact on SMEs

The draft regulation includes provisions that may restrict participation in public procurement procedures. Under the proposed framework, non-EU investors with direct investments exceeding €100 million in sectors defined as “strategic” could be excluded from certain procurement processes.

Companies operating within the European Union but partially owned by businesses from third countries that lack trade agreements with the EU could also face limitations in accessing public tenders.

These rules may have implications for SMEs with international investment structures. Smaller companies often rely on external financing sources and may have less access to capital compared with large corporations.

The draft legislation also introduces additional administrative requirements. These include documentation obligations, certification procedures, and compliance standards. Larger corporations typically maintain dedicated compliance departments capable of managing such processes, while SMEs may face higher relative administrative costs.

Calls for reducing bureaucratic requirements in EU industrial policy remain part of the broader policy discussion surrounding the draft regulation.

Low-Carbon Steel Classification and CBAM Data

The proposal also addresses the classification of “low-carbon steel,” particularly regarding the origin and emissions associated with steel production.

Within the framework of the Carbon Border Adjustment Mechanism (CBAM), default emission values are assigned to certain slab-producing countries. For stainless steel production, some estimates indicate emissions exceeding nine tonnes of CO₂ per tonne of steel.

These figures are based on CBAM calculations used to determine carbon intensity for imported materials. The methodology and data sources underlying these estimates remain part of ongoing policy and industry discussions.

Policy Development and Impact Assessment

The Industrial Accelerator Act is being advanced under the leadership of European Commissioner Stéphane Séjourné. The legislative proposal has experienced multiple delays prior to publication, following internal reviews and stakeholder feedback.

The accompanying impact assessment underwent revisions after an initial evaluation identified methodological shortcomings. Similar review processes have occurred in previous EU policy initiatives related to the steel sector.

Recent industrial policy initiatives within the European Union have focused on strengthening domestic production capacity, supporting strategic industries, and addressing supply chain resilience.

German Crude Steel Production Shows Year-on-Year Growth

Recent production data indicates that Germany’s crude steel output increased in January 2026 compared with the same period in the previous year.

According to industry figures, production rose by approximately 15% year-on-year. Despite this increase, total output remained about 5% below the ten-year average for the sector.

Industry analysts often use long-term averages to compare current production levels with historical performance across multiple economic cycles.

Rising EU Imports of Steel Slabs

Trade data for 2025 shows a notable increase in European Union imports of semi-finished steel products. EU steel producers imported close to 10 million tonnes of crude steel in the form of slabs during the year.

This represents an increase of more than 35% compared with the previous year. Import volumes also surpassed levels recorded in 2019, which is commonly used as a pre-crisis benchmark.

Steel slabs are intermediate products used by steel mills to produce finished steel goods. Import trends can reflect changes in production capacity, demand patterns, and supply chain dynamics within the European steel industry.

Source: steelnews.biz

***