EURATEX enters in constructive dialogue with European Commission to develop recovery technique for textile and apparel industry

The European textiles and clothing sector needs urgent assist, if it really wants to stay a strategic pillar of the European economy. EURATEX President Alberto Paccanelli placed a constructive dialogue with Commissioner Breton to build up quick and effective alternatives.

According to a recently available survey among European textile and garments companies, short term prospects for the market will be dramatic: 60% of firms expect sales to drop by half (and 30% expects a reduced amount of even 80%). 70% of companies has major financial constraints and 80% of the sample provides (temporarily) reduced workforce, applying non permanent unemployment schemes where obtainable.

Production companies report complications in their source chains, whereas retailers encounter the challenge of a “shed Summer months”. 1 out of 4 corporations is looking at to close down.

These dramatic figures have already been presented yesterday simply by EURATEX President Alberto Paccanelli in a videoconference with Commissioner Breton and additional key actors of the industry.

Despite this unprecedented condition, the European textile and clothing industry responded immediately to the problem provoked by COVID-19. Over 500 corporations reconverted component of their sites or invested in new machineries, to create protective masks and garments. They happen to be showing great feeling of solidarity and prefer to get over the crisis.

Alberto Paccanelli commented on the conference: “We are happy that Commissioner Breton recognises the strategic need for the textiles industry. Without textile products, no cars, devices or buildings could be built, nor can craftsmen, doctors or security forces do their function in full.”

To safeguard the industry, short term actions are needed, such as for example accessing liquidity, re-opening shops as quickly as feasible (to build demand), guaranteeing a smooth functioning of the internal market and avoiding all disruption in export market segments. The Commission should also avoid adding any regulatory burden in these tough times.

In the longer manage, a strategic plan needs to support the relaunch of our industry and improve the global competitiveness. Critical supply chains ought to be brought back to European countries, and we have to ensure an even playing discipline on the global market and, specifically, on imported goods. Development, digitalization and green market remain an aim for the industry, but they need to be examined in light of a relaunch program for the sector.

“European companies showed superb sense of solidarity through the crisis by providing defensive garments and masks free of charge to general public authorities” said Alberto Paccanelli. “I asked the Commissioner to come up with some actions, in the brief and long run, to relaunch the market and keep maintaining this close cooperation with representatives of the sector”.