The European Union (EU) is going through a period of economic stagnation and loss of competitiveness, exacerbated by growing debt. According to a recent report, the Twenty-Seven must deal with over-indebted countries while seeking to revive their economy and their competitiveness through massive investments.
France facing debt: 2029 objective for economic stability
Seven EU countries are currently in excessive deficit procedure, having exceeded the threshold of 3% of GDP set by the Stability Pact. France, for example, is close to 6%, leading the government to promise a return to normal by 2029. This situation highlights the challenges the EU faces in maintaining fiscal stability while stimulating the growth of its economy.
Mario Draghi, former president of the European Central Bank, recently published an alarming report on the competitiveness of the EU. He estimates that the Twenty-Seven should invest around 800 billion additional euros each year, or 5% of European GDP, to avoid falling behind in the global race for innovation. However, the current EU budget is limited to 1% of GDP, which raises the question of finding new financial resources to support this economy.
New measures to revive the European Union
A report by former Italian Prime Minister Enrico Letta proposes a series of measures to improve the economy and the functioning of the internal market. In particular, with better integration of the telecoms, energy and finance sectors. These initiatives aim to close the growth, productivity and innovation gaps between the EU and its main global competitors.
Finally, the EU and particularly France must find a delicate balance between debt management and stimulating economic growth. Massive investments and structural reforms will be essential to avoid economic decline and maintain Europe's competitiveness on the global stage.
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