Euratex sounds the alarm and calls for an urgent industrial strategy

The European textile and apparel sector comprises 192,000 companies and 1.3 million employees, generating an annual turnover of 167 billion euros. The industry is now warning of an imminent loss of competitiveness.

In a joint statement issued in Brussels on November 11, 2025, Euratex (the European Apparel and Textile Confederation) and IndustriAll Europe (the trade union representing workers in the sector) are calling on the European Commission to adopt an urgent industrial strategy.

According to both organisations, without swift action, Europe risks losing its industrial expertise; thousands of skilled jobs; and its strategic position in the global value chain. This position is threatened by fast fashion models and the complexities of the dual green and digital transition.

“We need a more assertive European industrial strategy that invests heavily in innovation while protecting our economy from unfair global competition,” said Dirk Vantyghem, director general of Euratex.

Call for a ‘fit for purpose’ industrial policy

The text, signed on October 16, 2025, outlines six priorities aimed at putting textiles back at the heart of Europe's industrial strategy:

Restoring a level playing field against ultra-fast fashion models based on very low wages and questionable social practices.
Stimulating demand for sustainable and ethical products through targeted incentives and awareness campaigns for European consumers.
Ensuring affordable access to energy for companies, particularly SMEs, to achieve a just energy transition.
Guaranteeing product transparency through a pragmatic implementation of the Digital Product Passport and the Ecodesign regulation, tailored to the capabilities of SMEs.
Investing heavily in skills by integrating sustainability and digitalisation into vocational education and training (VET) and supporting apprenticeships.
Coordinating national and regional policies to ensure the green and digital transition is ‘just’ and leaves no one behind.

Social as well as an economic warning

Beyond competitiveness, the statement emphasises the social dimension of the ongoing transformation. The social partners demand that the textile transformation occurs without sacrificing existing jobs or transferring added value outside of Europe.

Social dialogue and collective bargaining are presented as key to a successful adjustment, both for supporting employee upskilling and preserving business competitiveness.

The call from Euratex and IndustriAll highlights the major tension between climate ambition and industrial reality. As Brussels strengthens its regulatory arsenal, including ecodesign, product passports, and extended producer responsibility, manufacturers fear a competitive asymmetry with Asian players. This is particularly true for companies like Shein and Temu, who are largely exempt from these constraints.

The signal sent by this crisis is twofold. Firstly, it is aimed at public authorities, urging them to adapt the transition timeline and tools to avoid stifling SMEs. Secondly, it calls on European brands to invest immediately in material innovation, recycling, and traceability before the market reorganises around non-European players.

Europe judged to have ‘no trajectory’ for textile industry

While the sector does not dispute the environmental goals of the Green Deal, it condemns a transition ‘without a trajectory’, driven without an industrial roadmap. Unlike the automotive or battery industries, the European textile sector has not benefited from any investment plan or targeted support to help its SMEs navigate the ecological and digital transformation.

Euratex and IndustriAll point to the risk of an imbalance. By multiplying regulations without an equivalent investment policy, Europe is weakening its own companies. According to Euratex, the average price of a megawatt-hour for the textile industry remains 2.5 times higher than in Asia, hindering competitiveness and deterring investment.

“Without support measures, the ecological transition risks turning into industrial destruction,” warned an IndustriAll representative. The two organisations are advocating for a ‘European Textile Industrial Pact’, combining modernisation aid; dedicated training funds; and anti-dumping mechanisms on low-cost imports.

Point to watch

The implementation of the Digital Product Passport in 2026 will be a major test. Positioned between an opportunity for transparency and an administrative burden, it could either become a tool for green competitiveness or an additional handicap for European SMEs.

This article was translated to English using an AI tool.

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