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HomeBreaking NewsSerious concern voiced about the state of the textile sector in EU

Serious concern voiced about the state of the textile sector in EU

'Quick read' news summary

 The body representing the textiles industry in the EU says it is “highly concerned” about the potential loss of competitiveness, caused by the “EU’s inaction of the energy crisis.”

The comments come after the European Council summit last week and its conclusions on the measures to tackle the energy crisis.

The European Apparel and Textile Confederation says it is “extremely concerned about the fast loss of competitiveness of Europe” and demands urgent action to “save the industry.”

It says the reason for a “sharp” decline in competitiveness is twofold. 

First, the energy cost in Europe is more than 6 times higher than in the US, China, and neighbouring countries. 

“This factor alone has almost erased the business case for producing in the EU.”

At present, many textiles and clothing companies are producing at net loss or have shut down production, says the confederation.

“The industrial conditions have worsened in such a way that there is no business case to invest in Europe or buy products produced or processed in the EU. It is only the sense of responsibility of our entrepreneurs towards the European society that is keeping the plants and production running,” it says.

Secondly, “while the EU is passive and extremely slow in articulating a credible and effective response” to the energy crisis, its main international competitors and trade partners (China, India and the US respectively) have developed comprehensive state-aid frameworks for their domestic industry despite not being affected by the crisis at all. 

The latest example, it states, is the €369-billion scheme of the Inflation Reduction Act rolled out by the Biden administration.

Recent trade data indicate a loss of global competitiveness: imports to the EU have grown tremendously in 2022 (+35% year-to-date). It is also evident that the surge in imports goes in parallel with the surge of natural gas price. It is expected that energy

The body representing the textiles industry in the EU says it is “highly concerned” about the potential loss of competitiveness, caused by the “EU’s inaction of the energy crisis.” The comments come after the European Council summit last week and its conclusions on the measures to tackle the energy crisis. The European Apparel and Textile Confederation says it is “extremely concerned about the fast loss of competitiveness of Europe” and demands urgent action to “save the industry.”

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