Former European Central Bank chief and Italian prime minister Mario Draghi has presented a new report on the future of EU competitiveness, calling for a €800bn increase in investment to boost the European economy. Draghi emphasizes the need for a coordinated industrial policy and closer coordination between European countries to ensure effective use of funds. The report highlights the weak productivity in Europe and the slowing growth, pointing out challenges such as world trade slowing and Europe losing its main supplier of cheap energy, Russia. Draghi also stresses the need for increased investment in defense and the fact that Europe can no longer rely on population growth to drive economic growth.
Draghi’s report proposes a “new industrial strategy for Europe” with 170 different proposals aimed at improving Europe’s competitiveness. The report warns of Europe’s declining position in advanced technologies compared to countries like the US and China. Draghi also raises concerns about the barriers to commercial innovation in Europe, as evidenced by the departure of 30% of tech firms worth over €1bn from the EU since 2008. The report ultimately emphasizes the existential challenge Europe faces in terms of productivity and economic growth, urging policymakers to take immediate action.
The report is expected to influence the debate on EU competitiveness, with European Commission President Ursula von der Leyen emphasizing the importance of the issue. Draghi’s call for increased investment and a new industrial strategy comes at a time when investor morale in the eurozone is weakening, with the region facing recessionary tendencies, particularly in Germany. Additionally, a new joint venture between Barratt, Lloyds Banking Group, and Homes England in the UK aims to capitalize on plans to build 1.5m new homes, signaling a broader effort to address housing and infrastructure challenges across Europe.
Source
Photo credit www.theguardian.com
