1. Survey on Competitiveness in the Textile/Clothing and Leather Sectors of the New Member Countries and Bulgaria and Romania PRODUCTION RETAIL SALES CONSUMER PRICES This document has been produced with the financial support of the European Community’s BSP2 programme. The views expressed herein are those of CAST and can therefore in no way be taken to reflect the official opinion of the European Commission Sofia, 17th May 2005

2. TEXTILE PRODUCTION -5,322,432,7-23,3-1,0 SL 12,6-11,0-4,7n.a.-23,6-21,4 IR -14,119,4-11,142,2-27,2-31,4 CY -12,6n.a. 38,7n.a. Import Prices (Extra+Intra)PRODUCTION

3. CONSIDERATIONS ON TEXTILE PRODUCTION TRENDS A significant decrease in the total turnover over the period 2000/2004 both in the EU 15 and EU25. Bulgaria shows a very positive trend (+117,9%) the best of the panel of countries in the survey. Good general performance of the New Member States with the significant exceptions of Slovenia ( - 23,6%) and Hungary (- 23,3%) that show decreases similar to those of the most advanced countries such as the UK and France. Extraordinary performance of Bulgaria (+117,9%) and a very good performance of Romania (+47,2%) and Estonia (+41,3%).

4. CLOTHING PRODUCTION 3,3-7,6-17,4-6,9-3,8-43,3 FR 1,10,1-5,78,7-22,0-51,1 LU 5,8-14,3-12,87,38,0n.a. CY -12,6n.a. 38,7n.a. Import Prices (Extra+Intra)PRODUCTION

5. CONSIDERATIONS ON CLOTHING PRODUCTION TRENDS Remarkable decreasing trend both in the EU15 (- 21,4%) and the EU25 (- 23,2%) Bulgaria shows again a positive trend, the best of the sample of countries in the survey. Good performance of some of the NMS with the significant exceptions of Slovenia (- 21,4%) and Poland (- 15,4%). Extraordinary performance of Bulgaria (+105,5%) and good performance of Romania (+23,4%).

6. RETAIL SALES 0,0-6,5-19,1-12,8-13,1-31,8 SK 9,4-81,6-47,5-63,115,8-3,6 MT -12,4n.a. 0,0 SL 12,6-11,0-4,7n.a.-23,6-21,4 Import Prices (Extra+Intra)PRODUCTION

7. CONSIDERATIONS ON RETAIL SALES TRENDS T/C and Leather Goods The average trend over the period 2000- 2004 is slightly positive in the EU25 (+8%) and EU 15 (+7,1%). Bulgaria shows an increase of 23,8%; a good performance among the NMS. Best performers are the Baltic States (Lithuania +144,7%; Latvia +104,6%; Estonia + 84,7%). Remarkable increases also in UK, Ireland, Cyprus ca. +40%), far higher than many NMS. Bad performances of large EU countries such as Germany -12,8%, Italy -10,0% and partially Spain –1,3% who depress the overall average.

8. CONSUMERS PRICE IR -14,119,4-11,142,2-27,2-31,4 UK -21,4-22,5-3,741,6-22,7-33,8 BG n.a. 23,8117,9105,6 RO n.a. 6,747,223,4 PRODUCTION Import Prices (Extra+Intra)

9. CONSIDERATIONS ON CONSUMER PRICES TRENDS Clothing and Footwear Prices have been stable in the EU25 (- 0,4%) and EU 15 (- 0,4%). Unfortunately no data for Bulgaria There is no apparent direct relation between the quantity trends represented by the index of retail sales and prices.