Economy and supply chains key to the military. In background ESG [+comment]

Europe needs investment not only in defence but besides in a competitive economy and unchangeable supply chains to respond effectively to crises. Experts point out that building the EU's resilience must include cooperation with business and strengthening the single market, reports Newseria Business.

EU resilience and the function of a strong economy and supply chains

Building the EU's resilience to crises is not just arms. More and more attention is given to supply chains and the economy.

European business representatives point out that building the resilience of European Union countries should focus not only on investment in military capacity but mainly on a strong economy. Europe's competitiveness, supply chains and cooperation between countries or regions play an crucial function in this. This is an increasingly crucial issue in the EU.

– Immunity must be seen in a very broad perspective. The military aspect is 1 aspect, but not the only one. As business federations from different countries, we point out that, in addition to building our military capabilities, we must have a strong economy. The crisis is not only about armed invasions, as we are dealing with in Ukraine, but it could be events specified as COVID-19 or floods. Here business plays a immense function in various aspects – says Newseria agency King Graf, Deputy manager General for European Affairs in the Leviathan Confederation.

The remainder of the text is under the movie material Newseria Business

Drug supply chains and European security

As experts stressed during the panel "Strengthening the resilience and competitiveness of Europe: the approach of the North-East Flank countries" during the EFNI, Europe needs not only tanks, but besides efficient supply chains and assurance between public administration and business.

I can give you an example of drugs. In all crisis we face, whether it is an armed conflict or any another conflict, the public must have access to medicines, while in Poland we are dependent around 80% on imports of active substances from Asia into medicines, without active substances there are no medicines. If anything should happen, and COVID-19 shows that maybe, due to the fact that in specified a crisis supply chains have been broken, at this point we can stay without active substances, i.e. without medicines on the European continent – points out King Graf. "The EU institutions are increasingly aware that this resilience is bigger than military issues and defence capacity building issues.

Europe's competitiveness at the heart of the EU strategy

In this context, the word "competitiveness" is changed by all cases. In September 2024, Mario Draghi presented a study describing barriers to economical growth in Europe. On the basis of this, the European Commission presented a competitiveness compass in January – a plan to reconstruct its momentum. Among the initiatives undertaken are alleged omnibuses, i.e. simplification and deregulation packages of EU law. Legislative work is already underway over six.

"It is now in the hands of Parliament and the Council, that is, all the EU institutions, to relieve companies who request lower regulatory burdens to proceed to be competitive, so as not to lead production outside the European Union. This is 1 aspect. Another is, for example, a multi-annual budget, which can besides service competitiveness – the expert emphasizes.

New EU budget 2028–2034 and investment in resilience and innovation

The European Union's fresh long-term budget for the period 2028-2034 is expected to amount to around EUR 2 trillion, or 1.26 percent of the average gross national income. The European Commission wants it to be more flexible in the first place, allowing it to respond more rapidly and efficiently to unforeseen situations. It besides aims to strengthen Europe's sovereignty and boost its competitiveness so that it can safe supply chains, increase the scale of innovation and lead the global race towards clean and intelligent technologies. The European Competitiveness Fund is expected to invest more than €400 billion in strategical technologies for the benefit of the full Single Market, as recommended in the Letty and Draghi reports.

It is intended to stimulate investment in the private and public sectors. Its support will cover 4 areas: pure transformation and decarbonisation, digital transformation, health, biotechnology, agriculture and bioeconomyAs well as defence and space.

“We are very pleased that there is simply a wellness component, due to the fact that it truly shows that the European Union is looking at resilience not only in a military context, which is evidently very important,” he says. King Graf.

The European Commission's announcement shows that EUR 131 billion will be allocated to the defence, safety and space budget from 2028 to 2034.

Letty, Draghi and Niinistö reports – the foundation of the EU's resilience approach

"The European Union can better integrate and competitiveness and resilience in multiple ways. This has been highlighted by the reports that were adopted last year: the Letty report, which dealt with the single market, showing its importance, besides in the context of resilience, Draghi's study on competitiveness and Sauli Niinistö's study on resilience and crisis preparedness, says Deputy Director-General for European Affairs in the Leviathan Confederation.

The Niinistö study stressed the request to adopt a "whole-of-government and whole-of-society" approach where all applicable actors, both civilian and military, will be able to cooperate in consequence to crises. This readiness requires the integration of interior and external safety activities, as well as the usage of both civilian and military resources. This approach is guided by the initiative of business organisations from the countries of the north-east flanks of the EU and NATO, which have offered governments a partnership in defence and resilience investments.

Regional cooperation between business and countries as an component of EU resilience

“As part of BusinessEurope, we have established a coalition with the federations from the Nordic countries, the Baltic countries and the countries of Central and east Europe, where we are talking about the request for regional cooperation. Our region is all the more susceptible to threats from the East for now. We already see any attacks: there has been a drone attack, there are attacks on critical infrastructure – he emphasises King Graf. "We will pay attention to the circumstantial function of our region and cooperation in the defence, preparedness and resilience context, as well as to show how crucial business is and that associate States should work very closely with business. Business creates solutions that are needed to accomplish resilience of both our economy and societies.

Model of Finnish “total defence” as an example for Europe

As stressed during the panel on EFNI Maciej Witucki, Finland, in which preparation for the crisis is philosophy, can be an example. president of Finnish infrastructure giant Destia, Tero Kivinimi presented a "total defense" model, which involves the cooperation of the state and companies from planning to exercises and implementation of emergency preparedness strategies. Among the needs highlighted by experts are e.g. building the region's energy independence, investments in satellites, connectivity and energy storage.

[COMMENTARY]

Against the background of the information provided by Kinga Grafa and Newseria Business Agency, The ESG and in peculiar the directives due diligence in supply chains(CSDDs) take on additional importance. CSR projects with Russian drones are hard to implement. Companies should so consider shortening supply chains as part of their responsibility. And besides an investment in your own safety. It is hard to number on the revision of the directives by dense Brussels bureaucracy, although it would be desirable that the shortening of supply chains should be clearly regarded as socially responsible. Common sense and self-preservation remain.

"We always assumed that the Russian attack on NATO could take place in 2029. But now we hear assessments indicating the anticipation of escalation as early as 2028, and any military historians even believe that We've had our last peaceful summer.“ — In an interview with ‘Frankfurter Allgemeine Zeitung’ Minister of National Defence of Germany Boris Pistorius.

‘The enemy has begun preparations for war. It builds conditions designed to undermine public assurance in the government, Armed Forces and police and prepare the ground for possible actions in the territory of Poland," said General Chief of Staff of the Polish Army General Wiesław Kukuła.

The attack on Poland is being prepared — the Chief of the General Staff alerts.
Poland enters the pre-war phase, warns General Wiesław Kukuła. According to the Chief of General Staff, Russia is already building foundations for possible aggression today.
"The enemy began preparations for the war. He's building... pic.twitter.com/4y7l2ETc0d

— NEXTA Polska (@nexta polska) November 17, 2025

Gen. The cuckoo for these words was attacked by any commentators. They think the general is causing unnecessary panic and deterring investors. It follows that investors are like children, they do not see the intense preparations supported by China Russia to grow the war. In fact, these commentators are like children who believe that erstwhile they close their eyes it is something that is dangerous that will cease to exist.

Well, Russia won't disappear. And terrorist events, specified as railways, can multiply. We have pre-war times and the business planet has to respond to that too.

By the way, it reminds me A song by the Świetliki band in which we hear that there will never be specified a summertime again and over the horizon flashes and hears iron jaws.

Source: Newseria BusinessX portal