Former Italian Prime Minister and central banker Mario Draghi is set to release a highly anticipated report on EU competitiveness, promising “radical change” to help save the European economy. Draghi, known for his commitment to protecting the euro during his time at the European Central Bank, has hinted at key issues in his report, such as the growing productivity gap between the EU and the US and the need to address subsidies for green technology from countries like the US and China.
While Draghi’s findings are expected to focus on key sectors like defense and energy, the big question remains: how will his plans be funded? Suggestions include using national subsidies or borrowing from the European Stability Mechanism. Draghi’s potential proposal for common borrowing via Eurobonds could spark controversy and opposition from both the right and left political wings, as well as face challenges in a Brussels bureaucracy that has historically resisted market reforms.
Draghi’s report is seen as a wake-up call to the EU, urging both the Council and the Commission to reconsider their approaches to economic challenges. European Commission President Ursula von der Leyen may incorporate Draghi’s recommendations into the missions of her new Commissioners, potentially shaping her five-year term. Overall, Draghi’s report is expected to set the tone for the EU’s economic policies in the upcoming political cycle and will likely spark debates and discussions across the EU.
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