European industry is facing a perfect storm, in which crises follow one another without pause and hit harder and harder. In a modest office in Germany, entrepreneur Martina Nighswonger experiences the pressure of these dramatic changes daily, according to the Reuters publication. After the pandemic, rising energy prices and global trade tensions, a new destabilizing factor, namely the conflict in the Middle East, raises the costs of raw materials again, pushing businesses to the limit. His company, Gechem, active in the production of chemicals for cleaning products and the automotive sector, is just one example of a wider wave of affected companies. Entire industries, from chemistry and plastics to textiles and metallurgy, feel the full impact of the new price increases. In Europe, however, the effects are even more severe, as energy costs were already high compared to other regions. Escalating conflict in the Persian Gulf has led to strategic blockades and attacks on energy infrastructure, pushing the price of oil to $120 a barrel, twice what it was at the start of 2026. This sharp rise is directly affecting European economies, and Germany could lose up to 40 billion euros in just two years if prices remain high. The problem is aggravated by the fact that Europe is already starting from a vulnerable position. Electricity costs are much higher than in the United States, and the industry has already been weakened by global competition and factory closings. Experts warn that regions such as Germany and Great Britain are the most exposed to a new energy shock. For small and medium-sized companies, the situation is critical. They do not have the flexibility to quickly change raw material suppliers or absorb cost increases. In Gechem's case, the price of sulfamic acid rose significantly, generating additional costs of hundreds of thousands of euros and forcing the company to freeze hiring and consider layoffs, an unprecedented decision in the last two decades. The crisis is also spreading to large corporations. Industrial giants begin to raise prices, reduce staff or reevaluate their investments. At the same time, supply chains are severely affected: transport becomes more expensive, and raw materials such as aluminum, polyethylene or fertilizers are increasingly difficult to obtain. The impact is not limited to Germany. In France, manufacturers face supply bottlenecks from Asia, and in Denmark, companies such as LEGO are trying to reduce dependence on fossil fuels through sustainable alternatives. However, uncertainty continues to dominate the economic environment, and volatility is becoming the new normal. In the absence of strong support measures from governments, which now have more limited resources than in previous crises, the risks are rising alarmingly. If the price of oil continues to rise, entire sectors could become insolvent. The conclusion is stark: Europe's competitiveness crucially depends on access to safe and affordable energy, and the current crisis reveals a deep vulnerability that can no longer be ignored.
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