A group of Dutch economists has urged the government to reconsider the proposed €2 billion state aid for Tata Steel Nederland intended to support its decarbonization transition.

They argue that structurally high electricity prices and grid costs in the Netherlands would keep steel production costs above those in neighboring countries, weakening long-term competitiveness even with electrification or hydrogen-based technologies. 

Economists also expressed concerns over the company’s recent financial performance and limited internal funding capacity, warning that public funds could face significant risk.

Tata Steel Nederland responded that government backing is essential for advancing its planned green steel transformation, and discussions with authorities are ongoing.