In the EU Competitiveness Report, commissioned by Commission President Ursula von der Leyen herself, Draghi calls for “a triple transformation” of the European economy to make it competitive.
Former Italian Prime Minister Mario Draghi said on Monday that the European economy needs to undertake three major transformations to be competitive: accelerate innovation, make energy cheaper without giving up decarbonisation and reduce strategic dependencies, including strengthening defence. Set a injection of between 750,000 and 800,000 million euros per year to enable the EU to compete with, among others, China or the United States.
In your report As for the future of European competitiveness, Draghi proposes adopting a ‘new European industrial strategy’ that involves joint investment in goods of general interest and improving coordination of the industrial, commercial and competition policies of the Twenty-Seven.
Draghi warns that the EU faces the “existential challenge” of increasing its productivity and economic growth or, otherwise, having to reverse some of its ambitions and objectives, from the fight against climate change to financing its social model, and defends that “the only way to be more productive is for Europe to change radically.”
European growth has slowed to such an extent that over the past twenty years hole between EU GDP and US has been increased from 15% to 30% and China is gaining ground, while factors that were responsible for it, such as population growth, the rise of international trade or the availability of cheap Russian energy, are disappearing, the report recalls.
“The only way to be more productive is to change Europe radically,” the former president of the European Central Bank (ECB) says in the report he presented on Monday together with European Commission President Ursula von der Leyen.
Draghi has warned that the EU will need a “massive” increase in investment to digitalise and decarbonise the economy and boost its defence capabilities, requiring an effort of around 5 percentage points of GDP per year until it reaches EU levels. level of the 60s and 70s“If it wants to maintain its competitiveness compared to countries like China or the United States.”
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
