Fragmentation of supply chains and impact on the cost of living

The language versions will be available for download as the translations are completed.

Key Points

The EESC:

• emphasises the necessity for the EU to reduce import dependencies, especially for critical goods like pharmaceuticals and semiconductors, and to diversify supply chains by fostering multiple international partnerships;
• highlights the urgent need for targeted investments in strategic industries and infrastructure to strengthen economic resilience and bridge productivity gaps among European producers. Such investments should be part of a well-coordinated, comprehensive and adequately financed industrial policy;
• recommends expanding trade agreements, particularly with reliable partners in the Global South, and advocates for regulatory efficiency improvements to streamline complex EU frameworks while maintaining high standards;
• urges continued promotion of binding and enforceable Trade and Sustainable Development (TSD) chapters to protect EU markets against unfair competitive practices driven by lower global production standards;
• calls for enhanced financial and technical support mechanisms for Micro, Small, and Medium Enterprises (MSMEs) to diversify their suppliers, adopt sustainable business models, and effectively navigate regulatory complexities;
• stresses the importance of increased investment in research and development for high-tech and sustainable manufacturing sectors, including greater adoption of artificial intelligence and blockchain technologies to optimize supply chain management;
• underlines the need for targeted educational and training initiatives to enhance workforce skills, promote labour mobility within the single market, and attract and retain talent, thereby strengthening innovation capacity.