he speed and scale of the American economic support packages contrasts with the slowness with which the European Union (EU) is trying to implement its 750 million euros aid package. This cannot fail to have consequences on the economic recovery processes, and in the confidence of economic agents.

Portugal is going through the biggest economic crisis in the last hundred years, with high destruction of economic activity and profound social consequences, putting the GDP below the Potential GDP due to the Covid-19 pandemic. The increase in bad debts may also cause problems in the banking system.

And when the European Commission returns to the strictness of the Stability Pact, the ECB changes its accommodative low interest policy and the financial markets – in a context of interest rate hikes – return to analyzing the sustainability of public debts, we will have another “stress” moment in our public finances.

We are fifth country in the European Union (EU) with the biggest drop in GDP in 2020, and we will be among the three (Portugal, Spain and Italy) with the biggest joint drop in the 2020-2021 period. The three economies’ dependence on tourism helps explain this position, which shows the importance of the reindustrialization.

Our Textile and Clothing Industry (TCI) is essential for the country’s economic recovery, and our reindustrialization process must be financed by European funds. Gone are the days when we fought a battle against those who thought that The Portuguese TCI was obsolete because it was traditional. 

The export success of our TCI  in the pre-Covid phase shows that we were right, and now we have an industry ready to respond to the challenges of the 4.0 industry, but also of the energy and ecological transitions. Covid only came to accelerate a digitization process that already existed.

The challenge of the circular economy will be crucial in an industry that generates a lot of waste. The challenge of sustainability will not only be environmental, energetic, economic and financial, but also of growing transparency in operation and production: in how and where the product is made.

ATP is working hard to help this all-important industrial sector to overcome the challenges of the “Strategic Vision for the Textile and Clothing Sector” that the European Union will launch.