EU membership may trigger investments in Croatian textiles

08 Jul '13

2 min read

Croatia, a country in Central Europe, could witness trigger in its textile and clothing investments as it is planning to utilize the financial and industrial development assistance by the EU to strengthen its manufacturing sector, including textile and apparel industry after being the 28th EU member state.

Croatia, which has been an independent country since 1991, became the 28th EU member state on July 1, 2013, after a decade of carrying out all the reforms needed to bring it into line with EU laws and standards. It applied for EU membership in 2003.

Speaking to fibre2fashion, deputy director of Industry and Technology Department at Croatian Chamber of Economy, Ms. Augustin Torbarina said, “European Commission is very active in terms of textile and clothing sector and joining the EU is a good trigger for investment in the sector.”

“Croatia will have access to the EU structural funds and cohesion policy, which can significantly increase the investment environment in the region” she adds.

According to her, Croatia will have access to about € 400 million from the EU for the first six months and € 150 million annually for next six years. “In addition to structural and other funds, there will be some educational programs that will directly and indirectly encourage skills of Croatian textile and clothing sector,” she informs.

The financial assisstance from the EU can help in the reformation of the country as Croatia has been suffering from rapid financial and economic crisis for five consecutive years. The country of 4.4 million population was hit by poor investment climate, rigid market and an inefficient public sector.

Talking about the new strategies and policies by the Croatian Government for industrial development, she says, “The EU member states have the facility to create their national policies and they can also pursue its policy that will guide to resolve its national problems. So, Croatia must therefore define its strategies and policies that will contribute to strengthen its competitiveness within the EU.”

Therefore, “We are currently preparing industrial strategies aimed at increasing the productivity of the manufacturing industry including, textiles and garments,” she mentions.

The statistical data by the Central Bureau of Statistics for the Republic of Croatia states that clothing sector in the country witnessed decrease in manufacturing by 13.3 percent and the textile industry dipped by 8.6 percent in 2012 as compared to 2011.

Fibre2fashion News Desk - India

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