The government and ArcelorMittal are jointly opposed to the nationalization project.

Nationalizing the steelmaker ArcelorMittal France would be "a populist response to a structural problem," lamented Economy Minister Roland Lescure.

"France needs a clear industrial direction, not a supposed magic formula like nationalization," he wrote in a message posted on the Bluesky network.

The National Assembly on Thursday adopted in first reading a bill proposed by LFI aimed at nationalizing ArcelorMittal France, which announced in April reorganization measures that will result in job cuts, estimated at 260 at this stage.

"This is a historic vote, this is a victory that was achieved thanks to the mobilization of workers and the entire CGT," reacted CGT General Secretary Sophie Binet to AFP, calling on the government to "respect the vote that took place in Parliament."

The bill was passed with the support of the left (France Unbowed, Socialists, Greens, and Communists), while the National Rally abstained and the government voted against it. Its future, however, is highly uncertain, as it will be difficult for it to pass in the Senate, which is dominated by the right and center.

"The real issue is not nationalizing Arcelor, it is fighting against massive imports of Chinese steel, this is a debate at the European level," noted Labour Minister Jean-Pierre Farandou on Friday, who, like the rest of the government, opposes a nationalization estimated at three billion euros, against a backdrop of budgetary constraints.

Industry Minister Sébastien Martin told AFP that "this vote creates the illusion of protection, but it does not resolve the fall in European demand, the distorted global competition, or the production costs that weigh on the sector."

What the text provides for is "not to nationalize the ArcelorMittal group, but to nationalize only a part of it," added Pascal Deshayes, central union delegate CFE-CGC for ArcelorMittal France, who believes that this will "nationalize debts," with Europe being "the sick child of the group."

"The future of the French steel industry is not about posturing. It is about courageous decisions: protecting European steel in Brussels, investing, reducing production taxes, securing sites, fighting against unfair competition," added Sébastien Martin.

"The levers are European"

The European Commission's steel plan provides for roughly halving the quotas of foreign steel that can be imported into the EU duty-free, while doubling the tariffs for imports exceeding these quotas, to 50% from 25% previously.

Despite these announced protective measures, the Insoumis see nationalization as "the only solution" to save the sector and its 15.000 direct jobs, to fight against the social plan and to revive the decarbonization of blast furnaces.

The socialists advocate a "takeover" rather than nationalization, but voted for the text.

ArcelorMittal stated on Friday morning that nationalization "would in no way solve the problems faced by the steel industry in France and Europe", calling for "action on the structural factors of competitiveness", and stressing that "the levers are European".

"The European steel market is flooded with massive low-priced imports, which are having a devastating effect on European producers. Europe must (...) implement as quickly as possible the trade defence measures announced in October, as well as an effective carbon border adjustment mechanism," the group argues in a statement.

ArcelorMittal, the world's second-largest steelmaker, employs more than 7.000 people in its northern France hub, which includes seven plants. The group employs 15.000 people in total in France.

The group made the "deliberate strategic choice to prioritize the distribution" of cash "to shareholders, at the expense of anticipation" and investment, according to the consulting firm Secafi, commissioned by the central social and economic committee (CSEC), in a report contested by the company.