With Europe facing increasing global competition, high energy costs and a weakening industrial base, EURATEX warns that reducing the resources available for competitiveness would undermine the EU's ambition to implement the recommendations of the Draghi Report and strengthen European industry.

The European textile and clothing industry, representing nearly 200,000 companies, 1.2 million workers and €166 billion in annual turnover, illustrates the urgency of this challenge : companies are expected to invest simultaneously in decarbonisation, circularity, digitalisation and innovation, while facing growing competition from lower-cost imports. The new MFF should help them to make these investments.

Dirk Vantyghem, Director General of EURATEX, commented: “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. 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 identifies five priorities for the future EU budget:

• Prioritise funding for industrial competitiveness: Ensure that the European Competitiveness Fund, Horizon Europe and regional instruments provide sufficient resources to support manufacturig investment, innovation and industrial scale-up, with funding accessible to SMEs.
  

• Turn the green and digital transition into an industrial opportunity: Support cleaner production, energy efficiency, circular infrastructure, recycling, digitalisation and the practical implementation of EU sustainability requirements.
  

• Ensure fair competition in the Single Market: Invest in customs controls, market surveillance and enforcement of EU rules, including on imported products sold through e-commerce.
  

• Invest in innovation and skills: Continue the Textiles of the Future European Partnership under Horizon Europe beyond 2027 and support the development of new industrial competences.
  

• Make EU funding work for companies: Simplify application procedures, improve coordination between European and national programmes and ensure that financial instruments respond to the needs of SMEs and regional manufacturing ecosystems, both in the EU and the broader European neighbourhood.
  

EURATEX stresses that the European Competitiveness Fund must not become an instrument focused exclusively on emerging technologies or a limited number of strategic sectors. Established manufacturing industries, including textiles and clothing, must also be able to benefit from European investment programmes, particularly when developing advanced materials, clean technologies, digital processes and circular production models.

At the same time, a strong funding framework must be accompanied by policies that improve the business environment. High energy costs, excessive administrative burdens and unfair competition continue to discourage industrial investment in Europe. Addressing these structural challenges is essential to ensuring that European funding delivers tangible results.

As Member States negotiate the EU's future financial priorities, EURATEX calls on European leaders to match their competitiveness ambitions with the necessary financial resources. Delivering on the Draghi Report requires not only regulatory reform, but also sustained and accessible investment in Europe's industrial base.