Gunter Verheugen, the EU industry and enterprise commissioner, admitted at a conference that the sector is having to deal with difficult market conditions, job losses and slower-than-expected recovery.

"Every segment of textiles and clothing production, from spinning and weaving to garment make-up, has in one way or another suffered from the impact of the developments of the last few years," said the vice-President of the EU executive European Commission.

Verheugen stressed that politicians cannot create jobs and growth, so industrial policy must play an important role by creating a positive framework for business to thrive.

The commissioner set out a four-point plan: better access third country markets for EU companies; the elimination of non-tariff barriers within the framework of ongoing WTO talks; strict implementation of intellectual property rules and rapid completionof the Euro-Mediterranean zone.

Verheugen also believes that EU funding for poorer regions could provide an opportunity to tackle future challenges.

Other initiatives will follow, such as the Competitiveness and Innovation Program aimed at increasing competitiveness.

"We must not forget that the EU is still the largest exporter of textile products in the world. The textiles and clothing sector certainly has the capacity to remain a very important part of the industrial base of the EU," he said.

The EU clothing and textiles industry employs over 2.3 million people in some 200,000 companies. Enditem