Former President of the European Central Bank, Mario Draghi, has just delivered a crucial report on the future of the European Union economy. This document, awaited by observers, draws up an alarming observation and proposes bold solutions to revitalize the competitiveness of the Old Continent.
Draghi report, an electric shock to revive the European economy
The Draghi report paints a worrying picture of the EU's economic decline. The figures are relentless: in two decades, the EU's GDP has fallen by 15% compared to that of the United States. European productivity is stagnating, while its global market shares are inexorably eroding.
Even more worrying, Europe is lagging considerably behind in cutting-edge technologies. Of the 50 largest global companies in the high-tech sector, only four are European. THE observation is clear: the Old Continent missed the turn of the last industrial revolution.
Other structural weaknesses are highlighted:
- Prohibitive energy costs, up to four times those in the United States
- Critical dependence on foreign countries for certain strategic resources
- A single market that is too fragmented, slowing down the emergence of European giants
- Failing economic governance, incapable of defining a coherent strategy
An ambitious action plan to redress the situation
Faced with this alarming observation, Mario Draghi is proposing a bold roadmap. The objective: to massively raise the EU's annual investment rate, from 22% to 27% of GDP. This represents a colossal effort of 800 billion euros per year.
To achieve this, the report recommends three main levers:
- An increase in public investment spending by Member States
- Mobilization of European savings towards common innovative projects
- The creation of a new community financing facility, based on the model of the post-Covid recovery plan
Draghi also insists on the need to simplify European economic governance and create a “ Competitiveness coordination framework » to effectively manage this strategy.
If the diagnosis and proposals of the Draghi report achieve broad consensus, their implementation remains uncertain. Divisions between Member States persist, particularly on the question of a common debt.
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