Euratex, the European apparel and textile association, is pressing EU governments to guarantee that competitiveness funding in the 2028–2034 Multiannual Financial Framework translates into direct investment support for European manufacturers.

The appeal comes ahead of negotiations on the next MFF, with the association warning that any reduction in competitiveness funding would undermine the EU's implementation of the Draghi Report recommendations and its broader effort to rebuild manufacturing capacity.

The stakes are measurable. Euratex represents nearly 200,000 textile and clothing companies employing 1.2 million workers, with combined annual turnover of €166 billion (US$130 billion). The sector, the association argues, mirrors the pressures on European industry as a whole: intensifying global competition, high energy costs and a weakening industrial base.

"Europe has recognised the urgent need to restore its industrial competitiveness. The next EU budget must now turn that ambition into action," Euratex director general Dirk Vantyghem said. "We need a strong European Competitiveness Fund that supports companies in investing, innovating and maintaining manufacturing capacity in Europe."

Vantyghem paired the funding demand with a regulatory condition. "But money alone is not enough: competitiveness starts with a regulatory framework that rewards entrepreneurship, reduces unnecessary burdens and guarantees fair competition," he said. "Europe needs both ambitious investment and the right conditions for businesses to succeed."

What is Euratex asking for?

The association has set out five priorities for the next budget cycle:

• Sufficient resources for manufacturing investment, innovation and scale-up through the European Competitiveness Fund, Horizon Europe and regional funding instruments, with access open to SMEs.
• Funding for cleaner production, energy efficiency, circular infrastructure, recycling, digitalisation and practical implementation of EU sustainability rules.
• Investment in customs controls, market surveillance and enforcement of EU rules in the Single Market, including imported products sold online.
• Continuation of the Textiles of the Future European Partnership under Horizon Europe beyond 2027.
• Support for developing new industrial competences.

Euratex also wants EU funding to be easier for companies to access. Its proposals include simplified application procedures, better coordination between European and national programmes, and financial instruments shaped around the needs of SMEs and regional manufacturing ecosystems across the EU and the wider European neighbourhood.

Who qualifies for the fund?

The association takes a clear position on scope: the proposed European Competitiveness Fund should not be confined to emerging technologies or a narrow set of strategic sectors. Established manufacturing industries such as textiles and clothing should qualify for investment when they develop advanced materials, clean technologies, digital processes and circular production models.

For textile and clothing companies, the argument rests on a dual burden. Firms must finance decarbonisation, circularity, digitalisation and innovation at the same time as they compete against lower-cost imports. Euratex contends the next MFF should help carry that investment load.

The association frames this as a request, not a done deal. No funding levels, allocations or timelines have been agreed, and the MFF negotiations themselves have yet to begin in earnest.

Euratex adds that funding measures alone will not shift investment decisions. Energy costs, administrative requirements and import competition all shape where manufacturers put capital, and the association wants parallel policy action on those conditions.

The next MFF discussions will determine whether the Competitiveness Fund emerges with the breadth Euratex is seeking or a narrower technology-focused mandate.