Mario Draghi’s ‘competitiveness report’ says the bloc’s economic situation is dire… but shies away from pointing out the culprit
The EU is facing a significant economic crisis. A new report highlights the severe economic challenges the bloc is facing, but curiously avoids identifying the root cause of these problems.
Former European Central Bank president and Italian prime minister, Mario Draghi, has published a new “economic competitiveness” report following a year of work at the request of European Commission President Ursula von der Leyen. This report details a concerning economic situation.
Draghi’s report emphasizes the dire state of the EU economy, stating that “For the first time since the Cold War we must genuinely fear for our self-preservation.” Draghi highlights the need for the EU to catch up to China and the US economically, but acknowledges the bloc’s failure to do so.
Draghi points out that the EU has been impacted by a number of factors, including the slowdown in global trade, China’s increasing competition, the loss of cheap energy from Russia, and the need to bolster its defense.
The report also discusses the EU’s strategy of “de-coupling” from China, which has been rebranded as “de-risking” after recognizing the potential negative consequences of completely alienating its top trading partner.
The report underscores the EU’s need to focus on its own defense, particularly given the conflict in Ukraine. It also criticizes the bloc’s reliance on foreign weapons manufacturers, with nearly two-thirds of EU weapons purchases coming from the US.
Draghi acknowledges the EU’s economic challenges, stating that “If Europe cannot become more productive, we will be forced to choose. We will not be able to become, at once, a leader in new technologies, a beacon of climate responsibility and an independent player on the world stage. We will not be able to finance our social model. We will have to scale back some, if not all, of our ambitions. This is an existential challenge…”
The report highlights the EU’s need for significant investment to regain global competitiveness, estimating that an additional €800 billion ($890 billion) is required.
Draghi emphasizes the importance of addressing these economic challenges, stating that they are “important because they have to do with our founding values, prosperity, equity, peace and democracy in a sustainable world. And the EU exists to ensure Europeans that they actually will benefit from these fundamental rights. And if Europe can no longer provide them to its people, it will have lost its reason for being.”
The report suggests that the EU’s economic woes are a result of its past policies and decisions. It also calls for a more united and proactive approach from the bloc, advocating for greater economic independence and strategic partnerships.