Russia-Ukraine war is already showing the adverse effect on the industries across Europe and the other parts of the world.
The energy and gas prices are again skyrocketing, and EURATEX – the European Apparel and Textile Confederation – has highlighted that the companies are at risk of stopping their production if energy and gas prices continue to rise.
Though EURATEX supports the measures taken by the EU in the Ukrainian-Russian conflict, it asks the European Union and Members States to compensate the situation by supporting their industries.
“Companies need access to energy at reasonable prices, may those be subsidies, removing environmental levies or VAT from bills and price caps,” says EURATEX.
The energy crisis that started at the end of last year has been worsening in the last week, as per EURATEX. According to Reuters’ report, benchmark European gas prices at the Dutch TTF hub rose by 330 per cent last year, while benchmark German and French power contracts have more than doubled.
EURATEX further mentions that the textile and clothing industry is facing an unprecedented situation due to this price hike and many companies are considering shutting down production because of energy costs.
“The transfer to renewable and cleaner sources of energy needs to speed up, so to guarantee less dependency. But it is a long process that cannot be achieved in the forthcoming months. That’s why Europe should urgently look at the available options to control such market shocks,” concludes EURATEX.
