Euratex, the Brussels-based organisation representing Europe’s textiles and clothing industry, reports that companies are considering shutting down production if energy and gas prices continue to rise, notwithstanding support for the sanctions in place against Russia,

The energy crisis that started at the end of last year has been worsening and prices for energy, gas and oil has been skyrocketing. According to Reuters, Benchmark European gas prices at the Dutch TTF hub rose by 330% last year, while benchmark German and French power contracts have more than doubled.

Euratex supports the measures taken by the EU in the Ukrainian-Russian conflict, but is asking European Union and Members States to compensate by supporting their industries. Companies need access to energy at reasonable prices, whether from subsidies, the removal of environmental levies, VAT from bills and price caps.

The transfer to renewable and cleaner sources of energy needs to speed up, so to guarantee less dependency, but it is a long process that cannot be achieved in the forthcoming months, the organisation stresses. As a result, Europe should urgently look at the available options to control such market shocks.

The EU’s textile and clothing industry, with around 154,000 companies employing 1.47 million workers accounts for over €53 billion in exports.

www.euratex.eu