European CFOs see geopolitical risk as a rising threat in 2025
A new Deloitte survey shows that European CFOs are more concerned about geopolitical risks now than they were at the start of the Russia-Ukraine war
Deloitte’s Spring 2025 European CFO Survey shows that geopolitics is ranked among the top three risks for 90% of the participants surveyed. That’s the highest level on record since Deloitte began fielding the survey in 2015, and even exceeds levels seen at the start of Russia’s invasion of Ukraine in early 2022. The latest iteration of the survey included 1,542 chief financial officers from 14 countries in Europe, including France, Germany, Italy, Spain, and the United Kingdom (see methodology).
Ongoing conflicts, protectionist policies, and global trade tensions are driving the heightened awareness of geopolitical concerns. The International Monetary Fund’s recent downward revision of global growth forecasts, coupled with lowered projections for major economies and emerging markets, further underscore the gravity of the situation.1
For European CFOs, the current dynamic translates directly into potential disruptions to revenue streams, increases in operating costs, and constraints on strategic flexibility. Geopolitics are no longer viewed as distant externalities. They are now central to the immediate operational and financial health of the business.
Looking ahead, respondents maintain a cautious outlook. Just over half expect geopolitical risks to impact their sales over the next six months to some or a great extent, while just under half anticipate a similar impact on their supply chains. These concerns underscore the ongoing challenges posed by geopolitical instability and the need for continued vigilance and adaptation. The survey also reveals which sectors are most affected, with respondents from industries like tourism and travel, industrial products and services, and consumer goods expressing greater concern about sales impacts. Similarly, sectors heavily reliant on global supply chains, including energy, utilities, and mining, and consumer goods, anticipate significant disruptions.
Faced with this challenging backdrop, European CFOs are doubling down on proactive strategies to mitigate potential disruptions. Scenario analysis and impact assessments have emerged as the leading approach, adopted by 45% of respondents in the survey. Just over a quarter of respondents are integrating geopolitical and trade policy risks directly into corporate planning processes, while a similar proportion are actively reducing their reliance on specific sales and procurement markets to insulate their supply chains and revenue streams from external shocks.
The Deloitte Spring 2025 European CFO Survey paints a clear picture: Geopolitical risk is the dominant concern. The survey underscores the importance of robust risk management frameworks, agile planning, and a nuanced understanding of the evolving geopolitical landscape for navigating the uncertainties ahead.
Methodology
Deloitte has conducted the European CFO Survey since 2015, giving voice twice a year to senior financial executives from across Europe. The data for the spring 2025 edition was collected in April 2025 via an online survey and reflects responses from 1,542 CFOs in Austria, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, Switzerland, the United Kingdom and across a wide range of industries.