European Firms Shift from Crisis Response to Structural Resilience

The report, 'Supply chains and the rise of geopolitical risks: EU firms in a fragmenting world', highlights a transition from the chaotic emergency measures of 2023 to a more calculated approach. Data from 1,165 importers and exporters shows that the share of firms adjusting supply chains dropped to 37% by 2025, while stockpiling plummeted to 17%. Larger companies lead this charge with a 73% readiness rate, whereas smaller businesses remain vulnerable to shifting trade winds. Román Arjona, chief economist at the Commission's Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, characterized this uncertainty as a permanent fixture, urging deeper single-market integration to bolster regional stability.

Physical supply constraints have largely receded, with raw-material obstacles falling from 27% to 8% over two years. In their place, regulatory burdens and tariffs have emerged as primary headaches, particularly for firms trading with the US and China. Despite these pressures, 74% of companies report that rising costs remain their greatest competitive threat. Laurent Maurin of the EIB noted that resilience is rarely viewed as a standalone competitive edge, with firms prioritizing product quality and workforce talent instead. Ultimately, the survival of European industry hinges on digital innovation and targeted financing to navigate an era defined by permanent trade friction rather than temporary supply shocks.