Greek textile industry calls for govt support

26 May '14

2 min read

The textile and apparel industry in Greece is heading for a complete collapse and hence the Government should come forward to support the industry, Eleftherios Kourtalis, president of the Greek Textile Industry Association has said.

Speaking at the General Meeting of the members of the Association earlier this month, Mr. Kourtalis expressed disappointment and concern about the condition of the textile and garment industry in the country.

According to Mr. Kourtalis, the Greek textile industry has lost about 77.7 percent of its production capacity over the last eight years, while the capacity of the clothing sector has been reduced by 67.8 percent.

Last year, the exports of yarn, fabric and readymade garments from Greece decreased by 0.7 percent to €364.5 million, as against €366.9 million worth of exports made in 2012, Mr. Kourtalis said.

He noted that Greece had 1.5 million spindles in operation in 1980, and the figure has now reduced to 150,000.

In view of the same, Mr. Kourtalis sought immediate intervention of the Government and urged it to take concrete steps to make it possible to revive the sector so that it returns to positive growth rates.

In doing so, particular emphasis should be given to solve the problem of adequate funding in the industry at internationally competitive terms.

Secondly, tax burden should be reduced for consistent tax payers, while countering tax evasion. The Public Investment Program and State Commissions should be reactivated.

Further, there should be a noticeable reduction in energy costs by applying a reduced rate of electricity tariff for textile companies with an annual consumption of more than 13 million kwh.

Finally, there is a need to protect, upgrade and increase productivity of high quality Greek cotton, which can give a key competitive advantage to the industry.

Fibre2fashion News Desk - India

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