The European Steel Association (EUROFER) has stated that the referendum on the UK’s membership of the European Union puts a historic decision in the hands of the British people. However, a vote for Brexit (British exit from the European Union) would represent another blow to the UK steel industry, its value chains and the wider economy, and would also have far reaching effects on the European steel sector.
According to EUROFER, in the event of a vote for Brexit, international businesses would reconsider their operational, commercial and investment strategies, which could have serious repercussions for the downstream client sectors of the UK steel industry. In addition, the resulting uncertainty, particularly during the negotiating period, could immobilize investment and compound currency volatility. Meanwhile, in the event of Brexit, the UK would have to find alternative arrangements for the conduct of its trade policy.
EUROFER director general Axel Eggert said that trade policy is much more effective as a bloc, adding that inside the EU the UK gets a better deal internationally than it could ever hope to achieve outside.