At a high-level debate hosted today by the European Economic and Social Committee on “Geopolitical instability, defence expenditure and workers’ rights,” industriAll Europe’s Deputy General Secretary Isabelle Barthès highlighted how global conflicts are rapidly translating into economic risks for European industry and workers.

Addressing policymakers and social partners, she warned that the escalating conflict in Iran marks a new phase of instability, adding to existing pressures such as high energy costs, fragile supply chains and global competition.

While the broader public mainly feels rising energy prices, the impact is already visible on the ground. Trade unions report component shortages, short-time work schemes and increasing input costs, with inflation now forecast at 2.6%, threatening workers’ purchasing power just as it had begun to recover.

The disruption of the Strait of Hormuz - a critical route for energy and raw materials - risks triggering a deeper economic shock in the weeks ahead, potentially repeating and intensifying the 2022 energy crisis.

“The shock is already here, even if most people don’t feel it yet. Europe must act now to protect workers and avoid repeating the mistakes of the last crisis.” Isabelle Barthès stressed that the current geopolitical moment must be used to rethink Europe’s industrial model, strengthening resilience while ensuring fairness for workers.

Immediate demands to protect workers and industry

To cushion the immediate impact of the crisis on workers and industry, industriAll Europe called for:

  • Coordinated EU energy response, including joint purchasing and strategic reserves
  • Measures to curb price gouging and tax windfall profits
  • Rapid activation of SURE-type support for workers
  • Faster deployment of EU crisis instruments
  • Stronger diplomatic efforts to de-escalate conflicts
  • A turning point for Europe’s industrial strategy

Speaking in the context of broader discussions at the EESC on defence spending and workers’ rights, Isabelle Barthès underlined that geopolitical fragmentation is reshaping global supply chains and exposing Europe’s dependencies.

She called for a proactive European industrial policy backed by investment in clean technologies, critical materials and strategic sectors - combined with strong social conditionalities to ensure quality jobs.

While welcoming initiatives such as the Clean Industrial Deal, she warned that “Made in Europe” alone is not sufficient without fiscal support and common investment tools at EU level.

Concluding, she emphasised that Europe must act decisively:
“In a context of rising geopolitical turbulence, building industrial resilience and social stability is no longer optional - it is essential."