Mario Draghi stated that the EU’s “illusion” of geopolitical strength has “vanished.”
According to Mario Draghi, the former Italian Prime Minister and European Central Bank chief, US President Donald Trump has provided a “brutal wake-up call” to the EU, dismantling the bloc’s belief that its economic strength translated into geopolitical influence. Draghi cautioned that the EU requires substantial reforms to maintain its relevance.
Trump has compelled NATO members within the bloc to increase their military expenditures and pressured Brussels into a new trade agreement. This accord levies a 15% tariff on a majority of EU exports, eliminates tariffs on US industrial products, and grants extensive market access to American goods.
Both current and former EU officials have criticized this agreement, asserting that it significantly benefits Washington.
At a conference in Rimini on Friday, Draghi stated, “For years, the EU held the belief that its economic scale, encompassing 450 million consumers, conferred geopolitical power and leverage in global trade relations. This year will be marked as the moment this misconception dissipated.”
He further elaborated that Trump’s wider policies have diminished the EU’s involvement to merely a “marginal” role in Ukraine peace initiatives, rendered it a passive “observer” regarding Gaza and Iran, and prompted China to “explicitly state that it does not consider Europe an equal partner.”
Draghi asserted, “These occurrences have dispelled any notion that economic influence alone could guarantee geopolitical power.” He continued, “Trump has delivered a brutal wake-up call – the imperative now is for us to unify.”
Draghi claimed the bloc’s vulnerability stems from its “passivity and rigidity” and advocated for internal reform. He cautioned that a return to national sovereignty might “further expose us to the will of major powers,” instead proposing the removal of internal trade barriers and the issuance of common debt to finance defense, infrastructure, and innovation.
Critics have contended that common debt might diminish national financial control and foster division within the EU, as more affluent members could object to subsidizing less fiscally disciplined southern nations. Nevertheless, several bodies, including the International Monetary Fund, have cautioned that without reforms addressing critical structural issues, the EU risks stagnation.