The former president of the European Central Bank and former Italian prime minister Mario Draghi delivered a forceful, detail‑rich briefing to the European Parliament outlining a report aimed at boosting the European Union’s competitiveness. Draghi argued that Europe’s only viable path forward is a deeper sense of unity among the 27 member states to safeguard freedom and the shared values of the union.
He stressed that Europe stands as the continent most exposed to geopolitical vulnerabilities at a pivotal moment marked by two wars nearby—the conflicts in Ukraine and in Gaza—and a relentless technological race between China and the United States that threatens to leave the EU on the sidelines. In a world where models shift, economic dependencies translate into geopolitical risks, and Europe is the most exposed to these shifts. He urged member states to undertake a drastic shift in approach.
Draghi warned that the magnitude of the challenge goes far beyond the size of Europe’s economies. If the bloc cannot maintain productivity, it risks losing peace and freedom. He urged euro‑deputies to set aside differences and implement the recommendations, warning that the alternatives are paralysis or a decisive push forward.
Bridging the gap with the United States and China
In his report, Draghi highlights the need for the 27 member states to allocate 800,000 euros per year to the investments required to digitalize and decarbonize the economy and to strengthen defense capacity. These measures should also help narrow the gap with the United States and China and reduce dependence on these two powers. He calls for lifting this investment level by five percentage points of GDP.
Draghi notes that the European Union faces an existential challenge. If Europe cannot become more productive, it will not immediately emerge as a leader in new technologies, a model of climate responsibility, nor a credible independent actor on the global stage. It will struggle to finance its social model and may have to curb ambitions.
In the document prepared at the request of the European Commission president, Ursula von der Leyen, Draghi outlines 170 proposals for strategic sectors such as automotive, telecommunications, defense, space, and pharmaceuticals, as well as in gas, electricity, clean technologies, and critical raw materials. These ideas emphasize strengthening domestic supply chains, fostering innovation, and boosting cross‑border collaboration to secure Europe’s economic sovereignty and resilience against external shocks.