EURATEX, the European Apparel and Textile Confederation, has called on European Union leaders to maintain strong funding for industrial competitiveness in the EU’s next long-term budget for 2028–2034. The organisation says the upcoming Multiannual Financial Framework (MFF) must provide practical investment support to European companies as they face rising costs, global competition and growing pressure to modernise production.
The call comes ahead of discussions among EU Member States on the next MFF, which will determine the bloc’s financial priorities for the period. EURATEX warns that cuts to competitiveness funding could weaken Europe’s industrial base and make it harder to implement the recommendations of the Draghi Report on European competitiveness.
Textile and clothing companies face growing investment needs
Europe’s textile and clothing industry includes nearly 200,000 companies, employs around 1.2 million people and generates €166 billion in annual turnover. According to EURATEX, the sector highlights the need for sustained investment to maintain Europe’s manufacturing capacity and support industrial development.
Companies are expected to invest in decarbonisation, circularity, digitalisation and innovation while competing with lower-cost imports. These investments are essential for improving production efficiency, reducing environmental impacts and adapting to changing market requirements.
EURATEX argues that the next EU budget should help companies meet these demands without placing additional pressure on businesses already facing high energy costs and regulatory burdens.
Dirk Vantyghem, Director General of EURATEX, said Europe must turn its commitment to industrial competitiveness into concrete action.
“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,” Vantyghem said.
He also stressed that funding alone would not be enough. A supportive regulatory environment, fewer unnecessary administrative requirements and fair competition are equally important for businesses to invest and grow.
Five priorities for the next EU budget
EURATEX has outlined five priorities that it believes should guide the EU’s future spending decisions.
1. Increase funding for industrial competitiveness
The European Competitiveness Fund, Horizon Europe and regional funding instruments should provide sufficient resources for manufacturing investment, research and innovation, and industrial scale-up. EURATEX also wants these programmes to remain accessible to small and medium-sized enterprises (SMEs).
2. Support the green and digital transition
EU funding should help companies invest in cleaner production, energy efficiency, circular infrastructure, recycling technologies and digital processes. Support is also needed to help businesses implement EU sustainability requirements in practical and cost-effective ways.
3. Strengthen fair competition in the Single Market
EURATEX is calling for greater investment in customs controls, market surveillance and the enforcement of EU regulations. It highlights the importance of ensuring that imported products, including those sold through e-commerce platforms, comply with applicable European rules.
4. Continue investment in innovation and skills
The organisation wants the Textiles of the Future European Partnership under Horizon Europe to continue beyond 2027. It also calls for investment in industrial skills and the development of new capabilities needed to support technological progress across the textile and clothing value chain.
5. Make EU funding easier for companies to access
Simpler application procedures and better coordination between European and national funding programmes are needed to improve access to financial support. EURATEX says funding instruments should reflect the needs of SMEs and regional manufacturing ecosystems, both within the EU and across the wider European neighbourhood.
Established manufacturing industries must benefit
EURATEX has also warned against limiting the proposed European Competitiveness Fund to emerging technologies or a small number of strategic sectors.
Established manufacturing industries, including textiles and clothing, should be eligible for support when investing in advanced materials, clean technologies, digital production processes and circular business models.
For the textile sector, access to these funds could help companies modernise equipment, improve resource efficiency, develop recycling capacity and introduce new production methods. Such investment would also support Europe’s efforts to retain industrial expertise and manufacturing activity.
The organisation believes that industrial competitiveness depends on the ability of companies across different sectors to invest and adapt, rather than on funding a narrow group of industries.
Business conditions remain a concern
Alongside funding, EURATEX has called for improvements to the business environment. High energy prices, administrative burdens and unfair competition continue to affect industrial investment decisions across Europe.
The organisation argues that addressing these issues is necessary to ensure public investment produces tangible results. Even when funding is available, companies may struggle to commit to new projects if operating costs remain high or regulatory requirements create unnecessary obstacles.
For textile and clothing manufacturers, the combination of accessible finance and more predictable business conditions would help support long-term investment in production, technology and sustainability.
EU budget decisions will shape the industry’s future
As EU Member States discuss the financial framework for 2028–2034, EURATEX is urging European leaders to match their competitiveness objectives with sufficient and accessible funding.
The outcome will influence the support available to manufacturers as they respond to global competition, invest in cleaner production and adopt digital technologies. For Europe’s textile and clothing industry, the priority is to ensure that these investments remain commercially viable while supporting the region’s industrial base.
EURATEX maintains that implementing the recommendations of the Draghi Report requires both regulatory reform and sustained investment. The next EU budget, it argues, should give European manufacturers the financial support and business conditions needed to remain competitive and continue producing in Europe.
