Identifier
Created
Classification
Origin
07ROME406
2007-03-01 15:50:00
UNCLASSIFIED
Embassy Rome
Cable title:  

ITALY: STEEL INDUSTRY COMPETITIVENESS

Tags:  ECON ETRD OTRA EUN IT 
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VZCZCXRO2014
OO RUEHFL RUEHNP
DE RUEHRO #0406 0601550
ZNR UUUUU ZZH
O 011550Z MAR 07
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7309
INFO RUEHFR/AMEMBASSY PARIS PRIORITY 2225
RUEHRL/AMEMBASSY BERLIN PRIORITY 1728
RUEHKO/AMEMBASSY TOKYO PRIORITY 1882
RUEHUL/AMEMBASSY SEOUL PRIORITY 0490
RUEHBS/AMEMBASSY BRUSSELS PRIORITY 1652
RUEHMIL/AMCONSUL MILAN PRIORITY 8417
RUEHNP/AMCONSUL NAPLES PRIORITY 2366
RUEHFL/AMCONSUL FLORENCE PRIORITY 2217
RUEHBS/USEU BRUSSELS PRIORITY 4490
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS ROME 000406 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD OTRA EUN IT
SUBJECT: ITALY: STEEL INDUSTRY COMPETITIVENESS

REF: 06 STATE 202497

UNCLAS ROME 000406

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD OTRA EUN IT
SUBJECT: ITALY: STEEL INDUSTRY COMPETITIVENESS

REF: 06 STATE 202497


1. (U) The Italian steel sector boomed in the 1950s,
following the Italian Government's decision to create a steel
industry able to meet strong consumer demand for cars and
domestic appliances. The GOI's public steel producer,
Finsider, collapsed in the 1980s, and was privatized in the
1990s. In recent years, private companies in Italy have
raised steel production from 260 tons per worker in 1980 to
670 tons per worker in 2002, while reducing work force from
100,000 in 1980 to around 38,000 at present. Italy is the
second-largest producer of steel in the European Union, after
Germany.


2. (U) Italy's steel policy reflects EU steel policy. The
European Parliament issued a resolution December 2005 on the
future of the steel sector in the EU, calling on the EU
Commission to develop initiatives to prevent further decline
of the European steel industry and job losses. (Note: The
EU passed this resolution in response to an early-2004 crisis
in the iron and steel sector -- a.k.a. the "AST/Thyssen
Krupp" case. End note.) EU import duties for most steel
products are currently at zero percent. Since the European
Coal and Steel Community (ECSC) Treaty's expiration in 2002,
the EC Treaty has governed EU commercial policy for steel
products.


3. (U) According to Confindustria, the Italian
Industrialists' Association, the GOI does not have any
initiatives designed to enhance the competitiveness of the
steel industry. The government does have numerous research
programs focused on improving industial competitiveness, but
these are open to all industries, and are not steel-specific.
SPOGLI

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