EU steel industry layoffs
16.7.2024
Question for written answer E-001363/2024
to the Commission
Rule 144
Tomáš Zdechovský (PPE)
The steel industry in Czechia is experiencing serious issues, as the Commission has already been informed, including the possibility of thousands of employees being laid off in a region that depends heavily on steel production.
In 2019, the Commission determined that Liberty House was a suitable buyer for ArcelorMittal Ostrava a.s. This decision was made after an assessment with regard to fair competition[1], despite numerous warnings from labour unions and members of Czechia’s Chamber of Deputies about the potential consequences of the acquisition, especially on employment[2].
After five years, the acquisition caused the company to file for bankruptcy as a result of ongoing disputes between the management and the energy supplier Tameh Czech. As a result of both companies’ inability to reach a suitable agreement, the majority of employees have remained at home since the acquisition. In February 2024, creditors approved a restructuring plan, but it was unsuccessful, and the company filed for bankruptcy in June 2024.
- 1.Did the Commission take into account the potential negative impact on employment when assessing the situation?
- 2.What conditions did the Commission place on Liberty House in exchange for its decision?
- 3.Is the Commission monitoring the situation in Liberty Ostrava a.s. and will it take action, such as imposing fines, to remedy the situation?
Submitted: 16.7.2024