The European Apparel and Textile Confederation (EURATEX) has rejected an exorbitant price cap on the wholesale gas price for the industry, proposed by the European Commission. EURATEX represents the apparel and textile manufacturing sectors located in 21 member countries.
In a letter to the Commission’s President, EURATEX has stated that any price cap above the level of 80€euro/MWh would not help the EU industry & the textile sector in particular to survive the current crisis. The Commission has proposed €275/MWh (US$285/MWh).
The apparel and textile sector has gotten the worst hit in the situation, as rationing as well as an increase in price cap, has put the sector at stake across Europe. It is losing competitiveness against global competitors like China, India, and the US.
A complete halt of gas supply through the Nord Stream pipeline had played havoc with the European textile back in August 2022 after unilateral shunning by the Russian energy companies while reacting to Western sanctions. The operations of the Turk Steam pipeline, the remaining energy supply source, are also under threat of shutting down by the Kremlin.
