Spread the love

BRUSSELS – Europe’s textile industry is facing an existential crisis due to excessive energy prices, claims industry trade body EURATEX. Energy prices in the EU have been volatile since the Russian invasion of Ukraine and are making it difficult for regional textile manufacturers to compete with Asia. EURATEX and other trade bodies have been calling for the EU to implement a price-cap. The EU has now proposed a cap on natural gas prices at €275 per megawatt hour (MWh)- but EURATEX claims this goes nowhere near far enough.

This is Premium Content


Only user with Online and Print subscription can access this.


If you are a Free Subscriber, click here to upgrade.



If you already have Online or Print subscription Login To Unlock The Content!

EURATEX also told Apparel Insider the EU’s failure to provide industry with protection against soaring high energy prices could threaten the EU’s green agenda. “The European sustainability agenda is threatened because Europe may lose its industry autonomy and increase dependency on imports if producing in Europe becomes too expensive and companies have to close,” a spokesperson told us.

EURATEX has now written to EU President, Ursula von der Leyen, stating that any price cap above the level of €80/MWh would not help the EU industry – and the textile sector in particular – to survive the current crisis.

As early as July 2021, the wholesale gas price in the EU was below €30/MWh. EURATEX claims EU industry is now facing gas and energy prices that have “exceeded any coping capacity.” These include the record-high of €320/MWh last August to the current €127/MWh which, states EURATEX, is still 300 per cent above “business-as-usual prices.”

Said EURATEX: “If we continue on this path, the EU will soon become totally dependent on foreign imports with no leverage to implement its sustainability agenda, let alone lead the transition to a circular economy on the international stage.

“At present, the EU industry is facing a dire international competition with the industry in China, India and the US working at energy prices of around US$10/MWh. In addition, these competitors are benefitting of sky-high subsidies from their own governments: the rollout of the US$369bn industrial subsidy scheme is just the latest example.”

EURATEX director general, Dirk Vantyghem, believes that,“while the EU Industry is under immense, unprecedented pressure, a price cap at €275/MWh would be meaningless: the European industry will be permanently pushed out on the market. The industry is at the heart of the European way of life and the fundament of our social market economy. The EU must save its industry to save Europe. The moment to act is now.”

This is Premium Content


Only user with Online and Print subscription can access this.


If you are a Free Subscriber, click here to upgrade.



If you already have Online or Print subscription Login To Unlock The Content!


Spread the love