Fragmentation of supply chains and impact on the cost of living

Cost of living

Background

This opinion is part of a wider package of EESC opinions on the cost-of-living crisis. With this package the EESC is examining the different components of this policy challenge and presenting a comprehensive and wide-ranging set of recommendations to European and national policy-makers, civil society organisations and other stakeholders.

The opinion is addressing the fragmentation of supply chains and its impact on the cost of living. It emphasises the need for strategic responses to strengthen economic resilience and mitigate the effects of supply chain disruptions. The EU must balance economic resilience with national security to reduce protectionism risks.

Key points

In the opinion 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;
  • 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.

Additional Information

EESC section: External Relations (REX)

Opinion number: REX/96

Opinion type: Own-initiative opinion

Rapporteur: Dimitris Dimitriadis (Employers - GR I/Greece), Co-rapporteur: Anastasis Yiapanis,

(Civil Society Organisations - GR III/Cyprus)

Date of adoption by the section: 6/05/2025

Date of adoption in plenary: 18-19 June 2025

Result of the vote in plenary: ……. in favour/……. against/…… abstentions

Contact

Millie Tsoumani

Press Officer, Tel.: +32 (0) 2 546 9088, Email: amalia.tsoumani@eesc.europa.eu

Marco Ristori

Policy Officer, Tel.:+32 (2) 546 9969, Email: marco.ristori@eesc.europa.eu 

Work organisation