Euratex calls for EU-wide cap on energy prices
31/08/2022
Producers of manmade fibres, both synthetic and cellulosic, are particularly at risk, Euratex said, given the sector’s energy intensity and reliance on natural gas. Those involved in textile dyeing and finishing were also singled out as being under threat.
Therefore, the organisation has called for a European Union (EU)-wide cap on gas prices at €80 per megawatt hour to ensure a level playing field for firms across the EU. It has also proposed a revisioning of the price mechanism which underpins the local electricity market, in order to reduce what it called “huge price gaps” in comparison to global competitors.
Euratex president, Alberto Paccanelli, commented: “Given the current situation, a scenario where entire segments of the textile industry disappear can no longer be [dismissed]. This would lead to the loss of thousands of companies and tens of thousands of European jobs and would further aggravate Europe’s dependency on foreign sources for essential goods.”
Mr Paccanelli emphasised the need to support small and medium enterprises, especially, in the form of state aid and tax relief policies, in addition to an energy price cap. This would help companies to not only stay afloat during the current crisis, but also “prepare [them] for the green transition in the longer run”, he added.
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