The European Apparel and Textile Confederation (Euratex) has urged the European Commission to come up with measures to help the sector get through the Covid-19 pandemic, after a survey suggested one in four companies is considering closing down.

In a videoconference last week, Euratex president Alberto Paccanelli explained to commissioner Thierry Breton that a recent survey among European textile and clothing companies showed 60% expect sales to drop by half, while 30% expect a reduction of even 80%. Around 70% of companies have serious financial constraints, and 80% of the sample has a (temporarily) reduced workforce.

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In addition, Euratex says production companies report problems in their supply chains, retailers face the problem of a “lost summer season,” and one out of four companies is considering closing down.

“I asked the commissioner to come up with some measures, in the short and longer-term, to relaunch the economy and maintain this close cooperation with representatives of the industry,” Paccanelli said.

Short-term measures required to safeguard the industry include accessing liquidity, re-opening shops as quickly as feasible (to create demand), guaranteeing a smooth functioning of the internal market and avoiding any disruption in export markets.

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Euratex said the Commission should also refrain from “adding any regulatory burden in these difficult times.”

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In the longer run, meanwhile, a strategic plan is required to support the relaunch of the industry and enhance global competitiveness. “Critical supply chains should be brought back to Europe, and we need to ensure a level playing field on the global market and, especially, on imported goods. Innovation, digitalisation and green economy remain a target for the industry, but they need to be reviewed in light of a relaunch programme for the sector.”