Company turnovers in the European textiles and clothing sector fell between 10 and 20% as a result of Covid-19, but even bigger challenges lie ahead, says Brussels-based Euratex. Serious disruptions in supply chains, soaring energy prices and protective tendencies are threatening the competitiveness of the industry.

The European Unnion’s newly-revised Industry Strategy, launched on May 5^th, is addressing very relevant issues, and underlines the need to think carefully about Europe’s industrial base. Euratex welcomes the initiative, including the focus on 14 “eco-systems” and the proposal to develop privileged partnerships with trusted partners.

At the same time, it is calling for more consistency by the EU across its different policy areas.

“We welcome the recognition that we need a strong industrial base in Europe, but at the same time are struggling to maintain that base,” said director general Dirk Vantyghem. “Our companies face significant challenges related to over-regulation and rising energy and supply costs. It feels like one hand offering you help, while the other hand squeezes you tight.

“Our industrial model relies on accessing global markets and we are not calling for the European borders to be closed, but clearly, there is a need to establish global rules to ensure fair competition, and make sure these rules are properly implemented and controlled.”

The EU’s proposal to address distortions caused by foreign subsidies in the Single Market, should be welcomed in this context, he added.

“Today, as part of this new EU Industry Strategy, we have an opportunity to build a new business model, based on innovation, quality, sustainability and fairness. We look forward to develop such an EU Textile strategy with all stakeholders involved.”

The EU textile and clothing industry is an essential pillar of the local economy across many EU regions with around 160,000 companies employing 1.5 million workers and over € 61 billion of exports.

Euratex works to achieve a favourable environment within the European Union for design, development, manufacture and marketing of textile and clothing products.

www.euratex.eu