Almost two-thirds of EU companies say they are prepared to manage geopolitical risks, according to an EU report by the European Investment Bank and the European Commission entitled "Supply chains and the rise of geopolitical risks: EU firms in a fragmenting world."
Some 64% of firms said they were ready to handle geopolitical risks, with preparedness highest among large businesses at 73% and below half among small and medium-sized enterprises (SMEs), the European Commission announced on Monday.
The study found that tariffs and regulatory compliance are now seen as bigger trade obstacles than shortages and logistics problems.
About 67% of EU businesses trading with the United States and 60% of those trading with China expect tariffs to remain a long-term obstacle.
More firms also reported issues linked to rules and border measures between 2023 and 2025, with 20% flagging compliance with new regulations as a major obstacle and 18% pointing to customs and tariff changes.
At the same time, fewer companies reported supply problems in key areas over the same period, with the share citing obstacles falling from 27% to 8% for raw materials, from 15% to 3% for semiconductors and from 28% to 12% for logistics.
The proportion of EU importers adjusting their supply chains dropped from 50% to 37% between 2023 and 2025, while stockpiling — building up extra inventory to guard against disruption — fell to 17%.
Single market and shifting supply chains
Businesses trading only within the EU reduced emergency adjustments more sharply than those sourcing beyond the bloc, the report said, describing the EU single market as a buffer for firms focused on intra-EU trade.
Companies with supply chains extending outside the EU continued to invest to reduce exposure to future disruptions.
Nearly 90% of EU firms expect export performance to stay stable or improve despite uncertainty, though companies exporting to the US and China were less optimistic.
The findings are based on the EIB’s Supply Chain Survey of 1,165 EU importers and exporters and the EIB Investment Survey covering about 12,000 European businesses and 800 US firms.
