Japan and the United States, a sizable group of industrialized countries exists which has a major impact on world steel competition. The European Community is surrounded by a number of industrialized states which have developed significant steelmaking capability, and two of these countries, Spain and Sweden, are major steelmaking countries. In May 1981 the Spanish government enacted a massive new aid program for the steel industry, “Reconversion Measures for the Integrated Iron and Steel Industry. The Socialist government’s proposed closure of the Sagunto facility, coupled with a planned redirection of steel investments toward the more modern facilities in Asturias and the Basque region, triggered a political uproar and a general strike in Valencia. Steel industry work force reduction was achieved comparatively smoothly in Sweden, in contrast to other European countries. Finland possesses a steel industry with a reputation for competent management, efficiency, high employee morale, and high product quality.