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EURATEX in dialogue with EC to develop recovery strategy

21 Apr '20
3 min read
Pic: Shutterstock
Pic: Shutterstock

The European textiles and clothing sector needs urgent support, if it wants to remain a strategic pillar of the European economy. Alberto Paccanelli, president of EURATEX, the voice of the European textile and clothing industry, held a constructive dialogue through videoconference with Commissioner Thierry Breton to develop quick and effective solutions.

According to a recent survey among European textile and clothing companies, short term prospects for the industry are dramatic: 60 per cent of companies expect sales to drop by half (and 30 per cent expects a reduction of even 80 per cent). 70 per cent of companies have serious financial constraints and 80 per cent of the sample has (temporarily) reduced workforce, using temporary unemployment schemes where available. Production companies report problems in their supply chains, whereas retailers face the problem of a “lost Summer season”. 1 out of 4 companies is considering to close down. Paccanelli presented these figures to Commissioner Breton.

Despite this unprecedented situation, the European textile and clothing industry responded immediately to the situation provoked by COVID-19. Over 500 companies reconverted part of their sites or invested in new machineries, to produce protective masks and garments. They are showing great sense of solidarity and want to overcome the crisis.

Paccanelli commented on the meeting: “We are glad that Commissioner Breton recognises the strategic importance of the textiles industry. Without textile materials, no cars, machines or buildings can be built, nor can craftsmen, doctors or security forces do their work in full.”

To safeguard the industry, short term measures are needed, such as accessing liquidity, re-opening shops as quickly as feasible (to create demand), guaranteeing a smooth functioning of the internal market and avoiding any disruption in export markets. The European Commission should also refrain from adding any regulatory burden in these difficult times, EURATEX said in a press release.

In the longer run, a strategic plan needs to support the relaunch of our industry and enhance the global competitiveness. Critical supply chains should be brought back to Europe, and we need to ensure a level playing field on the global market and, especially, on imported goods. Innovation, digitalisation and green economy remain a target for the industry, but they need to be reviewed in light of a relaunch programme for the sector.

“European companies showed great sense of solidarity during the crisis by providing protective garments and masks for free to public authorities,” said Paccanelli. “I asked the Commissioner to come up with some measures, in the short and longer term, to relaunch the economy and maintain this close cooperation with representatives of the industry”.

Fibre2Fashion News Desk (RKS)

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