For businesses, resilience is the ability to continue investing, growing and competing when conditions become less favourable.
It means maintaining access to capital when markets tighten, securing energy when prices spike, keeping supply chains moving when trade routes are disrupted, and adapting quickly to technological change writes KPMG’s James Delahunt.
In an increasingly volatile world, resilience is no longer a defensive capability. It is a source of competitive advantage. The past decade has provided repeated reminders of why it matters. Businesses have navigated a global pandemic, supply chain disruptions, inflationary pressures, energy security concerns, and geopolitical instability.
The lesson is that shocks are no longer exceptional. They are a recurring feature of the economic landscape. The organisations that outperform are not those that simply withstand disruption, but those that emerge stronger from it.
That challenge is particularly acute for Europe. Mario Draghi's landmark report on competitiveness estimates that the EU requires an additional €750-800 billion of annual investment by 2030 if it is to remain globally competitive. Resilience is therefore not a defensive concept. It is a growth agenda.
As Ireland enters the second half of its Presidency of the Council of the European Union, it has an opportunity to help advance practical measures that strengthen Europe's long-term competitiveness.
Ireland brings a distinctive perspective. As one of Europe's most open economies, it has first-hand experience of both the opportunities and vulnerabilities that come with globalisation. Inward foreign direct investment in Ireland exceeds 200% of GDP, underlining the country's role as a gateway for international capital and investment.
That combination of openness and experience gives Ireland credibility in discussions about what resilience should mean in practice.
The businesses most vulnerable to external shocks are often those with constrained margins, concentrated customer bases and limited access to capital. Diversifying suppliers, strengthening logistics networks and investing in technology all require resources that are not always readily available.
Yet concentration creates its own risks. The World Trade Organisation estimates that around 12% of global trade passes through the Suez Canal, highlighting how disruption to a single route can have global consequences.
The companies that emerge strongest from periods of uncertainty tend to treat resilience as a strategic investment rather than a compliance exercise. They use disruption to strengthen market position while competitors focus on short-term cost management.
The same principle applies to major infrastructure and energy projects. Businesses that rely heavily on a single supplier, contractor or funding source often discover that resilience carries a much higher cost when markets tighten.
Europe does not suffer from a shortage of savings. It suffers from a shortage of effective capital allocation. The European Commission estimates that approximately €10 trillion of household savings sits in bank deposits across the EU, while many high-growth businesses continue to look outside Europe for growth capital. Accelerating the Savings and Investments Union should therefore be a priority.
Reducing barriers to cross-border investment, harmonising market rules and improving capital mobility would help ensure European businesses can access funding at scale within Europe. Draghi's diagnosis remains persuasive: Europe's challenge is not a lack of innovation or industrial capability, but an inability to deploy capital efficiently.
A practical Presidency legacy would be momentum behind a dedicated programme to identify and remove barriers to cross-border investment. Competitiveness will be restored through hundreds of incremental improvements rather than a single transformational reform.
If capital is the first pillar of resilience, energy is the second.
The International Energy Agency reports that electricity prices for energy-intensive industries in Europe remain more than twice US levels and around 50% higher than China's. For globally traded sectors, that is not simply an energy issue. It is a competitiveness issue.
One reason Ireland continues to attract investment into renewable energy and infrastructure is the visibility provided by long-term policy mechanisms such as the Renewable Electricity Support Scheme. Predictable frameworks reduce risk, lower financing costs and encourage private capital deployment.
The principle matters as much as the policy itself. Investors will commit capital where regulation is clear, durable and predictable.
Europe possesses world-class businesses, deep pools of savings, leading research capability and stable democratic institutions. What it requires is greater certainty around investment, energy and execution.
If, over the remainder of its Presidency, Ireland can help accelerate capital deployment, improve energy competitiveness and advance the implementation of the Draghi agenda, it will have made a meaningful contribution to Europe's long-term prosperity.
Because resilience is no longer simply about managing risk. It has become the prerequisite for growth.
Ireland's EU Presidency will help shape the future direction of Europe.
To discuss how this could impact your organisation, get in touch with James Delahunt; we'd be delighted to hear from you.
