Mario Draghi Calls for Urgent Investment to Boost EU's Global Competitiveness
Mario Draghi, the former Prime Minister of Italy and current head of the European Central Bank, has openly acknowledged that the European Union (EU) is falling behind in global economic competition. Presenting a critical report on the EU’s competitiveness, Draghi emphasized the necessity for massive investments to revitalize the region's economic standing.
The report highlights a stark reality: the EU's economic growth over the past two decades has significantly lagged behind that of the USA, while China has made rapid advancements, closing the gap with both the EU and the US. This trend suggests that the EU is in danger of losing its foothold in the global economy, which is becoming an increasingly smaller segment of the world market. A significant factor behind this decline is a lack of robust productivity growth within the EU.
To address these pressing issues, Draghi advocates that the EU must invest at least 750 to 800 billion euros annually in essential sectors such as the green transition, digitalization, and innovation. He underscored the urgency for radical changes, urging that these adjustments must come swiftly and translate into concrete actions. He pointed out that this required investment is more than double that of the Marshall Plan that facilitated Europe's recovery after World War II, indicating a dire need for substantial public and private investment to reclaim Europe’s competitive edge.
At a joint press conference on Monday with Ursula von der Leyen, the President of the European Commission, Draghi presented the findings of his report. Von der Leyen lauded the report, declaring it will serve as a foundational guide for the EU's strategic initiatives in the years to come. She highlighted the importance of directing investments towards promoting a green transition and ensuring that the benefits of economic growth are equitably distributed among all Europeans, deeming this focus critical to the upcoming work of the European Commission.
As the EU faces the dual challenges of increasing global competition and internal economic pressures, Draghi's report serves as a clarion call for rethinking investment strategies and economic policies, to not only boost competitiveness but to secure a sustainable and inclusive economic future for Europe.
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