Euratex demands strong EU 2028-2034 budget to back textile manufacturing

Euratex, the confederation representing nearly 200,000 textile and clothing companies that employ 1.2 million workers and generate €166 billion (US$130bn) in annual turnover, has called on EU policymakers to deliver a strong 2028-2034 Multiannual Financial Framework (MFF).

The association issued the appeal ahead of negotiations on the bloc's next long-term budget, framing the textile sector as a representative test case for European manufacturing under strain from high energy costs, intensifying global competition and a weakening industrial base.

What does Euratex want from the next MFF?

Euratex set out five budget priorities it wants anchored in the 2028-2034 framework:

• Channel resources from the European Competitiveness Fund, Horizon Europe and regional funds into manufacturing investment, innovation and scale-up, with SME access as a baseline
• Direct funding toward cleaner production, energy efficiency, recycling infrastructure, digitalisation and the implementation of EU sustainability rules
• Strengthen customs controls, market surveillance and Single Market enforcement, including checks on imported products sold online
• Continue the Textiles of the Future European Partnership under Horizon Europe beyond 2027, alongside support for new industrial competences
• Simplify application procedures, align EU and national programmes and tailor financial instruments to SMEs and regional manufacturing ecosystems inside the EU and the wider European neighbourhood

The association also pushed back against narrowing the Competitiveness Fund to a narrow set of strategic or emerging technologies. Established industries such as textiles and clothing should qualify when they develop advanced materials, clean-tech processes and circular production models, Euratex said.

Why does the budget timing matter?

The appeal arrives as EU institutions move to act on the Draghi Report's diagnosis of European competitiveness, which identified chronic underinvestment in manufacturing as a drag on growth.

Cutting funding for competitiveness now would undermine the Draghi recommendations and risk accelerating capacity losses in labour-intensive textile segments, the association warned.

"Europe has recognised the urgent need to restore its industrial competitiveness. The next EU budget must now turn that ambition into action. We need a strong European Competitiveness Fund that supports companies in investing, innovating and maintaining manufacturing capacity in Europe," Euratex director general Dirk Vantyghem said.

What conditions come attached?

Vantyghem made clear that financing alone would not shift investment decisions without regulatory reform.

"But money alone is not enough: competitiveness starts with a regulatory framework that rewards entrepreneurship, reduces unnecessary burdens and guarantees fair competition. Europe needs both ambitious investment and the right conditions for businesses to succeed," he said.

Energy costs, administrative requirements and competition from lower-cost imports are the three investment-decision factors Euratex named as decisive for European textile and apparel manufacturers in the next budget cycle.

What compliance line runs through the appeal?

Euratex tied its funding requests directly to the practical implementation of EU sustainability requirements covering decarbonisation, circularity and digitalisation, asking that these be treated as investment lines rather than soft policy targets.

Whether textile companies can fund those upgrades while absorbing import price pressure will depend on whether the MFF treats sustainability compliance as a budgeted cost or leaves it to individual firms, the association argued.

Sourcing decision for buyers and compliance officers: the 2028-2034 MFF will set the financing terms for sustainability upgrades, skills programmes and customs enforcement that determine whether EU-based textile and apparel manufacturing remains cost-competitive against lower-priced imports.

— Grace Kim