ENERGY : MORE AND MORE INCISIVE ACTIONS NEED TO BE TAKEN WITH NO FURTHER DELAY

The jump in the cost of energy is dominating the scene, even that of our supply chains, which have to deal with an extraordinary shock. EURATEX drafted its own position paper which was introduced to the European Commission on August 2022. On 16 September 2022, the European textiles industry have reacted on the energy package : "MORE AND MORE INCISIVE ACTIONS NEED TO BE TAKEN WITH NO FURTHER DELAY".

Last month, when gas wholesale prices reached the record level of 340€/MWh[1] – triggering also sky-high electricity prices – the European textiles industry called on the European Union to adopt a wholesale price cap for gas, the revision of the merit-order principle in the electricity market, support for SMEs and a single European strategy. On 14 September 2022, on the occasion of the State of the Union address by President Von der Leyen, the Commission announced initiatives aimed at tackling the dramatic energy crisis that the Europe is facing.

We welcome these proposals by the Commission to change the TTF benchmark parameters and decouple the TTF from the electricity market and the revision of the merit-order principle for the electricity market, which is no longer serving the purpose it was designed for. We also welcome the proposal to amend the state-aid framework that, in our view, should include the textiles finishing, the textiles services and the nonwoven sectors as well as a simplification of the application requirements. Furthermore, we call for a uniform implementation across the EU.

However, we acknowledge that the Commission proposal lacks in ambition and – if confirmed – it will come at the cost of losing European industrial capacity and European jobs. Ultimately, Europe will remain without its integrated textiles ecosystem, as we know it today, and no mean to translate into reality the EU textiles strategy, for more sustainable and circular textiles products.

An ambitious and meaningful European price cap on the wholesale price of natural gas  is absolutely necessary. Europe is running out of time to save its own industry. It is now time to act swiftly, decisively in unity and solidarity at European level. We understand a very high price cap has been so far discussed among Ministries and that is not reassuring for companies across Europe: if any cap is, as expected, above 100/MWh, these businesses will collapse. 

More information : EURATEX press release