Euratex issued the appeal ahead of discussions on the Multiannual Financial Framework (MFF) for 2028–2034. It argued the budget should ensure that funding for competitiveness results in investment support for European companies.
Euratex noted European industry is facing increased global competition, high energy costs and a weakening industrial base.
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Reducing funding for competitiveness could undermine the EU’s efforts to implement the recommendations of the Draghi Report and strengthen manufacturing, the organisation warned.
The association said the textile and clothing industry reflects the pressures facing companies across the sector. It represents nearly 200,000 companies, 1.2 million workers and €166 billion (US$130bn) in annual turnover.
Euratex added textile and clothing companies must invest in decarbonisation, circularity, digitalisation and innovation while competing with lower-cost imports, and that the next MFF should help finance these investments.
“Europe has recognised the urgent need to restore its industrial competitiveness. 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,” commented Euratex’s director general Dirk Vantyghem.
“But money alone is not enough: competitiveness starts with a regulatory framework that rewards entrepreneurship, reduces unnecessary burdens and guarantees fair competition. Europe needs both ambitious investment and the right conditions for businesses to succeed.”
Euratex has identified five priorities for the future budget. The first is to ensure that the European Competitiveness Fund, Horizon Europe and regional funding instruments provide sufficient resources for manufacturing investment, innovation and industrial scale-up. The association said those resources should be accessible to SMEs.
The second priority is to use funding to support cleaner production, energy efficiency, circular infrastructure, recycling, digitalisation and the practical implementation of EU sustainability requirements.
Euratex also called for investment in customs controls, market surveillance and enforcement of EU rules in the Single Market – including imported products sold online.
Euratex also called for Textiles of the Future European Partnership to continue under Horizon Europe beyond 2027. It also called for support to develop new industrial competences.
The group said EU funding should be easier for companies to use. Its proposals include simplifying application procedures, improving coordination between European and national programmes, and ensuring that financial instruments reflect the needs of SMEs and regional manufacturing ecosystems in the EU and the broader European neighbourhood.
The proposed European Competitiveness Fund, according to Euratex, should not be limited to emerging technologies or a small group of strategic sectors. Established manufacturing fields such as textiles and clothing should also qualify for investment when developing advanced materials, clean technologies, digital processes and circular production models.
Funding measures would also need to sit alongside policies addressing conditions for industrial investment. Energy costs, administrative requirements and competition from imports are among the factors affecting manufacturers’ investment decisions.
