By Dimitris Dimitriadis

The fragmentation of global supply chains directly impacts businesses and households through escalating costs and growing economic uncertainty.

Fragmented supply chains directly raise costs through increased tariffs, logistical disruptions and limited access to essential raw materials and intermediate goods. These issues affect sectors crucial for daily life, including pharmaceuticals, electronics and food production. Consumers ultimately bear these additional expenses, facing reduced purchasing power and restricted access to vital products. Moreover, these disruptions disproportionately affect lower-income households, exacerbating economic inequalities and social vulnerabilities across Europe.

It is essential to diversify supply chains to enhance economic resilience and maintain open trade channels. We must forge deeper economic partnerships with diverse global partners, particularly those aligned with Europe’s commitment to sustainable and equitable trade practices. Strengthening such relationships will reduce Europe’s vulnerability to single-source dependencies and external economic shocks.

Technological innovation must be the engine and the goal of all these efforts. Investing in advanced digital solutions, such as artificial intelligence and blockchain, can optimise supply chain efficiency, improve transparency and reduce operational costs. These technologies not only facilitate smoother trade operations but also bolster the competitive position of European industries globally.

Pursuing these objectives does not and must not mean renouncing sustainability. Aligning supply-chain strategies with sustainability objectives, such as supporting the circular economy and promoting local production networks, can further enhance long-term resilience and reduce environmental and social impacts.

Finally, regulatory simplification is essential. We need clear, effective rules that maintain robust protections for consumers, workers and the environment, and also enable European businesses, especially SMEs, to adapt swiftly and remain competitive amid global disruptions.