A year after his report on competitiveness, Mario Draghi makes the report of the steps forward and the European Union stall on the reforms indicated 365 days ago as Vitali to relaunch industries, businesses, productivity of the single market.
“Brussels’ inaction threatens the sovereignty and economic competitiveness”
The former president of the ECB launches a Brussels’ inaction of the “inaction”, which could threaten his sovereignty and economic competitiveness. “Our growth model is disappearing. Vulnerabilities are increasing. And there is no clear path to finance the investments we need,” says Draghi at the high -level conference ‘one year after the Draghi’ relationship in Brussels, supported by the President of the Commission, Ursula von der Leyen.
But it does not hide the disappointment. Although in recent months he has participated in conferences and debates, highlighting his recommendations several times to strengthen the competitiveness of the European Union in view of future challenges, Draghi known as the Commission has not achieved most of the objectives (about 11 percent, according to the Think Tank European Policy Innovation Council) identified in its 383 recommendations.
“EU challenges have exacerbated in the last year”
The former Italian premier, highlighting how in the last year the EU challenges have exacerbated (which repent in the European growth model, in dependencies on third countries and in the slowness of economic progress), has aimed the finger at the commercial policy adopted by the United States and its president Donald Trump. “The foundations of European growth – the expansion of world trade and high value exports – have further weakened,” said Draghi. “The United States imposed the highest duties since the days of the Smoot-Hawley” (was of the great depression). The former ECB number also highlights the economic competition represented by Beijing, with which there is an evident commercial imbalance. “China has become an even stronger competitor, both in third parties and, since the US duties deviate flows, within Europe itself. Since December last year, the commercial surplus of China with the EU has increased by almost 20 percent. We have also seen how the response capacity of Europe is limited by its addictions, even when our economic weight is considerable”, added Draghi. The agreement signed recently between the EU and Mercosur (the latter consisting of Argentina, Brazil, Uruguay and Paraguay) can give relief to our exports, but the fact remains that “the United States absorb about three quarters of the deficit of global current games”, so “diversifying their market is unrealistic in the short term”. Translated: a turning point is needed.
“There is great frustration between citizens and businesses for the slowness of the EU”
On the technological front, Draghi asked for a real turning point. He invoked a radical simplification of the GDPR, which today increases the costs of European companies and brakes the development of artificial intelligence, and a review of the ACT, with the suspension of the second phase for high -risk systems, until the effects are not better known. He then urged the birth of a “28th regime” to allow innovative companies to operate without national fragmentation, more funds concentrated in high-risk projects managed with a “Darpa” model and a strong integration of the AI in the strategic industrial sectors. The energy chapter remains, for the former number one of the ECB, the real bottleneck of European competitiveness.
Although it recognizes “some sign of change”, Draghi highlights how there is “great frustration” between citizens and businesses, “disappointed by the slowness with which the EU moves”. The former head of the ECB stresses the need for a “different path that requires new speed, scale and intensity, means acting together, not fragmenting our efforts”. It means – it is the idea of Draghi – concentrate the resources where the impact is greater. “And it means producing results within months, not years”, is the warning.
On the cars front, Draghi said that it is necessary to rethink the EU objectives for the sector. This is because the targets are based “on the assumptions now overcome”. As highlighted by the former Italian premier, “the deadline of 2035 for zero emissions should have triggered a virtuous circle: rigorous objectives would have stimulated investments in charging infrastructures, made the internal market grow, made the cheapest electrical models. The adjacent sectors were expected – batteries and chips – they develop parallel, supported by targeted industrial policies. Report Draghi.
“Only united in the answers can we measure ourselves with extraordinary actions”
On the defense front, the former head of the ECB has recognized that military expenses are growing rapidly, but warned that “these commitments add up to already enormous financing needs”, with an overall needs that from 800 billion borne last year rises to 1,200 billion per year until 2031, of which 510 billion additional only for the public component. For this reason, Draghi has asked for greater coordination in military investments, antitrust rules that favor industrial consolidations and strategic use of public contracts to create a true European defense market. “We have already seen how Europe has been able to build the single market and the euro with clear deadlines and tangible results”, recalled Draghi, inviting leaders to “overcome historical taboos” and to define new concrete, binding and verifiable objectives. “Only units of intent and urgency in the responses will show that Europe is ready to measure themselves with extraordinary times through extraordinary actions,” he concluded.
