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Out of the EU: implications for industry in the UK

27 June 2016

The results of the referendum conducted in the UK indicate a willingness 52% of the participants to withdraw from the EU. However, these results do not mean that relations with the European Union will be immediately disconnected. The process of disengagement will last many years. Negotiations, coming to Brussels and London, have to cover a lot of questions. Meanwhile, the representatives of the steel Association, UK Steel UK made a statement. In it they provided a reflection on future consequences when leaving the European Union of metallurgists of the country.

Undoubtedly, the referendum results seem shocking to the national industry. The industry expects a negative impact from the sharp decline of the national currency. The decline will affect the stock price of national companies. Investment will also pose considerable challenges, given the uncertainty of the investors. Indian media Express their own opinion. Perhaps «Brexit» significantly complicate the sale of metallurgical assets of the British Indian Corporation Tata Steel.

On the other hand, UK Steel finds positive aspects in the current situation. In particular, the exit from the EU would allow the government more freedom to solve problems in metallurgical sector. After leaving the European Union Britain will not be affected by the European restrictions and rules. Accordingly, the leadership of the Association called for more drastic measures. The British authorities are encouraged to actively support the national producers of steel. And don’t look at the same in Brussels. More specifically, the Association proposed to the Cabinet to revise the price of electricity. The reduction of tariffs for national metallurgists must raise and pay for carbon dioxide emissions. It is also proposed to use national steel products when implementing the most important projects. They include as the expansion of airports and construction of new nuclear power plants. At the same time it is proposed to limit the volume of imported rolled products. This measure shall first affect products from China.

The national metallurgists understand the necessity of free access of products to the European market. This item is highly important. Their data was provided by the Tata Steel company. About one-third of the country’s steel production is sold in the continental EU countries. Also manufacturers of great Britain are sure that you will have to adhere to EU rules. However, after the country’s withdrawal from the EU will not be able to influence decisions.

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