- I draw your attention to a sequence of calls made by EURATEX. On 31 January, EURATEX pointed out how the current energy crisis was impacting the competitiveness of the European textile and clothing industry. On 2 March, EURATEX highlighted that companies were at risk of stopping their production if energy and gas prices continued to rise. On 26 August, EURATEX called for a single European strategy to tackle this energy crisis.
- So, EURATEX has been expressing concern about the energy impact on the European textiles industry since the beginning of the year. However, the situation apparently continues to worsen. If things don't improve, and the EU or national govts can't do much beyond a point, what is the EURATEX solution to the current crisis?
EURATEX, in the name of the textile industry, along with other sector associations, is asking for a price cap on gas; most member states are asking the same, but the European Commission is hesitant to move forward with this. EURATEX also believes in the need to revise the price setting mechanism for electricity; the current production cost for electricity is around 10% of the sales price, which is not acceptable. Most importantly, we need a plan at EU level, and not a situation where single member states compete with each other in launching national support programmes.
Has EURATEX done any survey on the rise in energy prices? How much have prices increased in the last one year? But obviously, prices would be different in each country. How much are companies absorbing the prices, and how much are they passing on to consumers?
We know from our member associations that in some countries, such as Italy, the prices have gone up 400% (interview of Sergio Tamborini, SMI President). Companies are mainly absorbing the price increase but in some case production costs is creating too high losses forcing them to reduce production, temporarily closing down or moving production abroad.
Across Europe, governments are introducing measures limiting energy usage. What are textile companies themselves doing in this regard? Is EURATEX planning to issue guidelines on what companies can / should do to manage energy consumption?
In the short run, not much can be done. The industry is already trying to reduce the use of gas and electricity as much as possible, but the low hanging fruits are gone. Further increase in energy efficiency requires investment in new technology and machines, and this will take time. In today’s crisis, there is no time left.
