Sittings · Document

OPINION (COM(2025)0726 – C100245/2025 – 2025/0726(COD)) 2025-12-03

On the proposal for a regulation of the European Parliament and of the Council Addressing the negative trade-related effects of global overcapacity on the Union steel market

Committee on Industry, Research and Energy · Rapporteur: Sofie Eriksson

PA_Legam

AMENDMENTS

The Committee on Industry, Research and Energy submits the following to the Committee on International Trade, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) The steel sector is central to the Union’s competitiveness and security. The Union has shown unequivocally the strategic importance that it attaches to that sector and its commitment to ensure the sector’s viability and long-term sustainability.

(1) The steel sector is central to the Union’s economy and economic security, and plays a key role in quality job creation, especially in areas and regions where it is concentrated. It is important for the Union’s competitiveness, strategic autonomy, including the decarbonisation of our energy systems and defence capabilities. The Union has shown unequivocally the strategic importance that it attaches to that sector and its commitment to ensure the sector’s viability and long-term sustainability.

Amendment 2

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

(1a) Steel-producing industrial towns and regions play an important role for workers, communities and competitiveness. These places are where raw materials have been extracted and transformed and technical skills passed down over generations. These towns hold the knowledge, the equipment, and the social cohesion needed to make a transition real and just.

Amendment 3

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) Steel industries across countries and regions, including the Union, are suffering the negative impact derived from increasing global structural excess capacity. That global challenge affects the Union’s domestic market and markets of other countries either directly, through imports from countries with excess capacity, or indirectly, as a result of the ‘push-out’ effect, or in both ways. The effective resolution of global overcapacity requires enhanced joint efforts of the Union and its like-minded partners which do not contribute to global overcapacity. The Union will continue leading the international work, including in the framework of the Global Forum on Steel Excess Capacity, on addressing the root causes of global overcapacity and implementing solutions strengthening transparency of the global steel market and taking into consideration modern production and supply techniques, including through the application of the “melted and poured” principle as well as monitoring of imports and exports. The Union and the like-minded countries should work together with a view to ring-fencing their economies from global overcapacity while ensuring secure supply chains and increasing market access among them.

(2) Steel industries, workers, industrial towns and regions across countries, including the Union, are suffering the negative impact derived from increasing global structural excess capacity. That global challenge affects the Union’s domestic market and markets of other countries either directly, through imports from countries with excess capacity, or indirectly, as a result of the ‘push-out’ effect, or in both ways. The effective resolution of global overcapacity requires enhanced joint efforts of the Union and its like-minded partners which do not contribute to global overcapacity. The Union will continue leading the international work, including in the framework of the Global Forum on Steel Excess Capacity, on addressing the root causes of global overcapacity and implementing solutions strengthening transparency of the global steel market and taking into consideration modern production and supply techniques, including through the application of the “melted and poured” principle as well as monitoring of imports and exports. The Union and the like-minded countries should urgently work together with a view to ring-fencing their economies from global overcapacity while ensuring secure supply chains and increasing market access among them. Such cooperation should be pursued in a constructive and forward-looking spirit that recognises shared strategic interests and mutual benefits, aiming at reducing distortions in global steel markets and promoting fair competition.

Amendment 4

Proposal for a regulation

Recital 6

Text proposed by the Commission

Amendment

(6) In November 2024, Union leaders adopted the Budapest Declaration2 highlighting the urgent need and determination to make the Union more competitive through a new European competitiveness deal. Furthermore, leaders declared their commitment to ensuring an industrial renewal and decarbonisation allowing the Union to remain an industrial and technological powerhouse. Union leaders also recognised the need for increasing defence readiness and capabilities, in particular by strengthening defence technological and industrial base accordingly. To that end, leaders committed to develop an industrial policy for the Union to ensure the growth of tomorrow’s key technologies, while paying particular attention to traditional industries in transition.

(6) In November 2024, Union leaders adopted the Budapest Declaration2 highlighting the urgent need and determination to make the Union more competitive through a new European competitiveness deal. Furthermore, leaders declared their commitment to ensuring an industrial renewal and decarbonisation allowing the Union to remain an industrial and technological powerhouse that fosters quality jobs. Union leaders also recognised the need for increasing defence readiness and capabilities, in particular by strengthening defence technological and industrial base accordingly. To that end, leaders committed to develop an industrial policy for the Union to ensure the growth of tomorrow’s key technologies, while paying particular attention to traditional industries in transition.

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2 https://www.consilium.europa.eu/en/press/press-releases/2024/11/08/the-budapest-declaration/

Amendment 5

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) Industrial competitiveness is a core priority and decarbonisation constitute a powerful driver of growth when integrated with industrial, competition, economic and trade policies.

(7) Industrial competitiveness is a core priority and should strive to utilise Union production capacity, technological leadership and skilled employment in key sectors within the Union, while preventing the relocation of strategic industries to regions with lower environmental or social standards and unfair subsidy mechanisms. Decarbonisation is a powerful driver of growth when combined with ambitious policies in the field of industrial policy, energy policy and research and development. When such policies are coherent and mutually reinforcing, the shift to clean, circular and resource-efficient technologies will strengthen value chains, support high quality employment, and position the Union as a global leader in future markets. Ensuring that decarbonisation reaches its full economic potential is essential for maintaining the Union’s industrial base and technological leadership.

Amendment 6

Proposal for a regulation

Recital 8

Text proposed by the Commission

Amendment

(8) Energy intensive industries are focal sectors requiring urgent support to decarbonise, electrify, and confront high energy costs, unfair global competition, and complex regulations, harming their competitiveness. It is essential to enable these industries to remain globally competitive and continue producing in the Union, by protecting Union capacities against unfair trade practices, attracting investments in green and low- carbon steel, promoting the creation of a strong business case for energy-intensive industries to meet the Union’s climate commitments and industrial ambitions. As steel production accounts for around 5 % of the Union’s greenhouse gas emissions, accelerating the deployment of low- and near-zero-emission technologies, including hydrogen-based and electrified steelmaking, and strengthening circularity through the recovery and processing of high-quality recycled ferrous scrap, will be essential to reduce emissions and enhance resource efficiency.

Amendment 7

Proposal for a regulation

Recital 8 a (new)

Text proposed by the Commission

Amendment

(8a) Steel constitutes a metal of strategic importance for the Union’s cleantech manufacturing capacity and the energy transition. Steel is also foundational for many other industries such as the Union’s transport, including automotive, building and energy infrastructure industries. Ensuring stable and resilient supply chains, as well as maintaining a strong domestic steel production base that is competitive and technologically advanced and decarbonised, is vital to the Union’s industrial sovereignty and its strategic autonomy, and essential to achieving the Union’s objective of becoming climate-neutral by 2050 at the latest.

Amendment 8

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) Moreover, as recognised in the Steel and Metals Action Plan3 , steel represents a metal of strategic importance for the Union’s defence capability. Given the current geopolitical environment, stable and resilient supply chains of critical metals, like steel, and domestic production are essential for defence and aerospace, and for avoiding unwanted dependencies on third country suppliers.

(9) Therefore, the Union stays committed to urgently take measures to ensure clean and affordable energy, quality jobs, upskilling and reskilling, and developing lead markets with both demand and supply side measures, by implementing the Steel and Metals Action Plan3 and Clean Industrial Deal.

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3 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - A European Steel and Metals Action Plan, COM(2025) 125 final.

Amendment 9

Proposal for a regulation

Recital 9 a (new)

Text proposed by the Commission

Amendment

(9a) Steel represents a metal of strategic importance for the Union’s defence capability and competitiveness. Especially in a context marked by increasing global instability and heightened security pressures, stable and resilient supply chains of critical metals, such as steel, and a strong and competitive domestic production base are essential for defence and aerospace, and for avoiding unwanted dependencies on third country suppliers.

Amendment 10

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11) In addition, the recent evolution of third country trade-restrictive measures is further increasing import pressure, both in terms of volumes and prices, on Union producers. Such pressure is expected only to increase further and will lead to a further decline in Union production, plant closures and job losses. At the same time, the Union should ensure that the implementation of the measure preserves the integrity and continuity of Union industrial value chains.

Amendment 11

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) As a result, the Union steel industry is in a dire situation with the unprecedented loss of the production capacity amounting to more than 30 million tons since 2018, historically low-capacity utilisation rate reaching 67% in 2024, and around 30000 jobs lost since 2018, with several thousand more job losses announced in 2024. The Union steel industry recorded losses in 2024.

Amendment 12

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13) Given the fast-worsening situation of the domestic steel industry and the unsatisfactory progress so far in finding a collective solution addressing global structural overcapacity, it is necessary to adopt a new measure replacing Implementing Regulation (EU) 2019/159. On 18 July 2025, the Commission launched a call for evidence and a targeted consultation to seek the views from stakeholders on various aspects of the new measure, including its form, level, geographical scope and duration, as well as other specific features such as rules of origin. The process ran until 18 August 2025 and over five hundred responses were received: 143 submissions to the call for evidence and 373 replies to the targeted consultation questionnaire. A detailed summary of the feedback received is available in the Staff Working Document accompanying this legislative proposal.

(13) Given the fast-worsening situation of the domestic steel industry and the unsatisfactory progress so far in finding a collective solution addressing global structural overcapacity, it is necessary to urgently adopt a new measure replacing Implementing Regulation (EU) 2019/159. On 18 July 2025, the Commission launched a call for evidence and a targeted consultation to seek the views from stakeholders on various aspects of the new measure, including its form, level, geographical scope and duration, as well as other specific features such as rules of origin. The process ran until 18 August 2025 and over five hundred responses were received: 143 submissions to the call for evidence and 373 replies to the targeted consultation questionnaire. A detailed summary of the feedback received is available in the Staff Working Document accompanying this legislative proposal. Due to the urgency of the matter, the Commission decided not to conduct an impact assessment but affirmed its commitment to presenting an evaluation of its consequences after the entry into force of this Regulation.

Amendment 13

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) The total volume of tariff quotas should be calculated applying the imports’ market share in the Union market in the year 2013 as reference (around 13% market share), to the overall consumption in the Union steel market in 2024 (the latest year for which full available data is available). That results in a total annual tariff quota volume of 18 345 922 tons. The calculation should not allocate the proportion of imports originating in the Russian Federation and Belarus, which are currently subject to import bans. For products currently subject to derogation under Article 3g(1), point (d), of Council Regulation (EU) No 833/2014 until 1 October 2028, a significant price gap has been materialised since the Russian invasion in 2022 between products originating from Russia vis-à-vis other third countries, and such products originating from Russia have increased their market shares in relation to other third countries, especially in relation to Ukraine. Those import flows also provide the Russian Federation with significant revenues, thereby directly contributing to its ability to sustain its war of aggression, while simultaneously maintaining strategic dependencies. The Commission should deliver an assessment of Union industry’s substantially unutilised capacity to supply such products and the necessity to take similar measures as those presented in this Regulation in relation to products currently benefiting from derogation under Article 3g(1), point (d), of Council Regulation (EU) No 833/2014 which applies until 1 October 2028, with a view to adopting measures to phase out imports of such products from Russia.

Amendment 14

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19) The tariff quotas should be allocated per product category based on the share of imports that each product category held over the period 2022-2024. That reference period for allocating the share of the quota is deemed appropriate as it reflects accurately the more recent trade flows. The reference period should be periodically updated, in order to maintain the same level of accuracy in reflecting the evolution of trade flows.

Amendment 15

Proposal for a regulation

Recital 20 a (new)

Text proposed by the Commission

Amendment

(20a) To ensure fair and balanced administration of tariff-rate quotas, the concentration of imports by a few operators and stockpiling practices that exhaust quotas early should be prevented, as they undermine continuous and predictable steel supply and fair access, particularly for SMEs and foundries. The Commission, in cooperation with Member States, should therefore examine measures to ensure transparent and proportionate quota management throughout each period.

Amendment 16

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24) In order to ensure that the level of quotas opened in relation to imports into the Union is adapted to changing circumstances in the markets of the products covered by this Regulation as well as to provide technical specifications for the implementation of the melt and pour requirement, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to supplement this Regulation by laying down the detailed rules for identifying the country in which the steel used in the production of the product is melted and poured and to amend Annex II to this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making8 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(24) In order to ensure that the level of quotas opened in relation to imports into the Union is adapted to changing circumstances in the markets of the products covered by this Regulation as well as to provide technical specifications for the implementation of the melt and pour requirement, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to supplement this Regulation by laying down the detailed rules for identifying the country in which the steel used in the production of the product is melted and poured and to amend Annex II to this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making8 . Furthermore, it is of importance that affected industries and industrial towns and regions are heard in the preparatory work. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

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8 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.

Amendment 17

Proposal for a regulation

Recital 26

Text proposed by the Commission

Amendment

(26) The Commission should assess at the latest within 2 years following the adoption of this Regulation the necessity to adjust the scope of products covered by this Regulation and if deemed necessary, it should consider making a legislative proposal to add additional steel products, including products that are made of or contain a significant amount of steel.

(26) Within six months following the adoption of this Regulation, the Commission should assess the necessity to adjust its product scope. This assessment should take into account, among other factors, foundries, the potential impact of evolving global trade measures that may redirect trade flows towards the Union, products made of or containing a significant amount of steel affected by global overcapacity, and the situation of downstream sectors whose competitiveness, including that of small and medium-sized enterprises (SMEs) and foundries, may be negatively impacted. Where appropriate, and on the basis of verified data, the Commission should consider presenting a legislative proposal to extend the product scope to additional steel products or to adopt other effective measures including targeted provisions to mitigate adverse effects on downstream sectors SMEs and foundries. Following this initial assessment, the Commission should carry out subsequent assessments on an annual basis, or earlier if significant market disruptions or sudden changes in global trade patterns justify an earlier assessment

Amendment 18

Proposal for a regulation

Recital 26 a (new)

Text proposed by the Commission

Amendment

(26a) To prevent circumvention of this Regulation through imports of steel products not listed in Annex I the Commission should be empowered to adopt delegated acts to supplement the list of product categories covered by this Regulation.

Amendment 19

Proposal for a regulation

Article 3 – paragraph 2

Text proposed by the Commission

Amendment

2. At the moment of importation, importers shall provide appropriate evidence, such as a mill certificate which will prove the country of “melt and pour” of the steel used in the production of the product.

2. At the moment of importation, importers shall provide verifiable evidence proving the country of “melt and pour” of the steel used in the production of the product. Such evidence shall include a mill certificate issued by the original steel producer, identifying the corresponding heat number and containing the technical and production data necessary to trace the origin of the steel.

Amendment 20

Proposal for a regulation

Article 3 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2a. The Commission, in cooperation with Member States, shall establish detailed rules to ensure the authenticity and traceability of mill certificates, including, where appropriate, the use of digital verification systems, unique identification numbers, or other control mechanisms to prevent falsification or misuse, while taking into account the specific situation of small and medium-sized enterprises (SMEs) and avoiding disproportionate administrative burdens.

Amendment 21

Proposal for a regulation

Article 4 – paragraph 1 – subparagraph 1 – point f a (new)

Text proposed by the Commission

Amendment

(fa) the interest of the Union’s security and defence policy;

Amendment 22

Proposal for a regulation

Article 6 – paragraph -1 (new)

Text proposed by the Commission

Amendment

-1. The Commission is empowered to adopt delegated acts in accordance with Article 7 to amend the list of product categories covered by this Regulation as specified in Annex I, by adding product categories that prevent circumvention of this Regulation.

Amendment 23

Proposal for a regulation

Article 6 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) potential issues of availability of supply in certain product categories;

(e) potential issues of availability of supply in certain product categories and their impact on downstream value chains;

Amendment 24

Proposal for a regulation

Article 6 – paragraph 1 – point e a (new)

Text proposed by the Commission

Amendment

(ea) the interest of the Union’s security and defence policy;

Amendment 25

Proposal for a regulation

Article 7 – paragraph 2

Text proposed by the Commission

Amendment

2. The power to adopt delegated acts referred to in Article 6 shall be conferred on the Commission for an indeterminate period of time from [Publications Office: insert the entry into force of this Regulation].

2. The power to adopt delegated acts referred to in Article 6 shall be conferred on the Commission for a period of five years from [Publications Office: insert the entry into force of this Regulation]. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Amendment 26

Proposal for a regulation

Article 9 – paragraph 1

Text proposed by the Commission

Amendment

1. By [Publications Office: insert the date 2 years after the adoption of this draft Regulation] the Commission shall assess the necessity of amending the product scope of this Regulation, and may submit a legislative proposal to amend this Regulation. This assessment shall be carried out periodically every two years after the first review.

1. By [Publications Office: insert the date 6 months after the adoption of this draft Regulation] the Commission shall assess the necessity of amending the product scope of this Regulation, including with priority, downstream steel products not covered by Annex I which are at risk of trade diversion, and may submit a legislative proposal to amend this Regulation. This assessment shall be carried out periodically every year after the first review. Where significant market disruptions or sudden changes in global trade patterns occur, the Commission shall conduct an earlier assessment.

Amendment 27

Proposal for a regulation

Article 9 – paragraph 2

Text proposed by the Commission

Amendment

2. Before 1 July 2031, and every five years thereafter, the Commission shall evaluate the effectiveness of this Regulation. Such evaluation shall have regard to the persistence of the circumstances that justified the adoption of this Regulation and the situation of the Union steel making industry. Based on that evaluation, the Commission may submit a legislative proposal to amend or repeal this Regulation.

2. Before 1 July 2031, and every five years thereafter, the Commission shall evaluate the effectiveness of this Regulation, including its compatibility with obligations under the World Trade Organization agreements. Such evaluations shall have regard to the persistence of the circumstances that justified the adoption of this Regulation and the situation of the Union steel making industry. Based on that evaluation, the Commission may submit a legislative proposal to amend or repeal this Regulation.

Amendment 28

Proposal for a regulation

Annex I - row 15

Text proposed by the Commission

Product category number

Product category name

CN code

Stainless Wire Rod

7221 00 10, 722 10 90

Amendment

Product category number

Product category name

CN code

Stainless Wire Rod

7221 00 10, 7221 10 90

Amendment 29

Proposal for a regulation

Annex II - row 15

Text proposed by the Commission

Product category number

Product category name

CN code

TRQ volume allocated (in tons)

Out-of-quota duty level

Stainless Wire Rod

7221 00 10, 722 10 90

40,462

50%

Amendment

Product category number

Product category name

CN code

TRQ volume allocated (in tons)

Out-of-quota duty level

Stainless Wire Rod

7221 00 10, 7221 10 90

40,462

50%

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her opinion input on matters pertaining to the subject of the file that she received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

IF Metall

SSAB AB

The European Steel Association

Confederation of Swedish Enterprise

Jernkontoret

Teknikföretagen

Outokumpu Oyj

Hitachi Energy

Erasteel

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Addressing the negative trade-related effects of global overcapacity on the Union steel market

References

COM(2025)0726 – C10-0245/2025 – 2025/0726(COD)

Committee(s) responsible

Date announced in plenary

INTA

12.11.2025

Opinion by

Date announced in plenary

ITRE

12.11.2025

Rapporteur for the opinion

Date appointed

Sofie Eriksson

5.11.2025

Discussed in committee

20.11.2025

Date adopted

3.12.2025

Result of final vote

–:

Members present for the final vote

Oihane Agirregoitia Martínez, Tom Berendsen, Michael Bloss, Carlo Ciccioli, Raúl de la Hoz Quintano, Pilar del Castillo Vera, Elena Donazzan, Matthias Ecke, Christian Ehler, Sofie Eriksson, Sigrid Friis, Lina Gálvez, Jens Geier, Bruno Gonçalves, Nicolás González Casares, Giorgio Gori, Christophe Grudler, Elisabetta Gualmini, Niels Flemming Hansen, Eero Heinäluoma, Diana Iovanovici Şoşoacă, Seán Kelly, Ondřej Knotek, Eszter Lakos, Morten Løkkegaard, Yannis Maniatis, Sara Matthieu, Marina Mesure, Jana Nagyová, Ville Niinistö, Mirosława Nykiel, Daniel Obajtek, Thomas Pellerin-Carlin, Jüri Ratas, Julie Rechagneux, Aura Salla, Elena Sancho Murillo, Paulius Saudargas, Benedetta Scuderi, Anthony Smith, Antonín Staněk, Anna Stürgkh, Beata Szydło, Dario Tamburrano, Bruno Tobback, Francesco Ventola, Yvan Verougstraete, Andrea Wechsler, Angelika Winzig, Anna Zalewska

Substitutes present for the final vote

Christophe Bay, Alessandro Ciriani, Annalisa Corrado, Andi Cristea, Mélanie Disdier, Kamila Gasiuk-Pihowicz, Petras Gražulis, Markéta Gregorová, Michalis Hadjipantela, Michael McNamara, Massimiliano Salini, Silvia Sardone, Günther Sidl, Susana Solís Pérez, Francesco Torselli, Inese Vaidere, Marion Walsmann, Sophie Wilmès, Iuliu Winkler

Members under Rule 216(7) present for the final vote

Niels Geuking, Ilia Lazarov, Milan Mazurek, Volker Schnurrbusch, Ana Vasconcelos

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

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