Euratex calls for single European strategy to tackle energy crisis

The European textile and fashion industry, represented by Euratex, has called on leaders to implement a single European strategy in order to tackle the emerging energy crisis.

It comes as gas and electricity prices reach “unprecedented levels” in the region, resulting in “severe” global competition and cost increases for those in the industry.

Euratex has requested for a revision of the electricity price and an EU wide cap on gas prices, as well as special support to avoid potential bankruptcies and relocations outside of Europe.

The organisation added that it had observed a proliferation of contradictory, uncoordinated national initiatives to tackle the crisis, leading to fragmentation of the Single Market and a chaotic policy and regulatory environment, putting a further strain on the industry’s supply chain.

“Given the current situation, a scenario where entire segments of the textiles industry will disappear can no longer be excluded,” said Alberto Paccanelli, Euratex president, in a release.

Paccanelli continued: “This would lead to the loss of thousands of companies and tens of thousands of European jobs and would further aggravate the dependency of Europe to foreign sources of essential goods. This applies specifically to SMEs, who need temporary support measures to survive the current crisis and to prepare for the green transition in the longer run.”

Euratex noted that specific segments of the textile industry are particularly vulnerable, including the man-made and cellulose-based fibres industry, an energy intensive sector and a major consumer of natural gas.