EU's Path to Economic Competitiveness: A Strategic Blueprint

Mario Draghi emphasized the need for coordinated industrial policy, rapid decisions, and significant investments to help the European Union stay competitive with the United States and China. His report outlines recommendations for joint borrowing, enhanced competition rules, and investments in skills and innovation. It also stresses a rethinking of trade strategies to bolster the EU's economic standing.

The European Union requires a more coordinated industrial policy, faster decision-making, and massive investments to stay competitive with economic giants like the United States and China, according to a report by Mario Draghi released on Monday. The former European Central Bank president provided key recommendations to boost the EU's economic competitiveness.

Draghi's report emphasizes that EU nations need a minimum of 750-800 billion euros in annual investment, marking the largest such financial requirement seen in half a century. While stressing the importance of private-public partnerships, the report controversially suggested that the EU consider joint borrowing to finance these projects. German Finance Minister Christian Lindner, however, opposed this proposal.

The report also advocates for a revamp in EU competition rules to help European businesses compete globally, especially in tech. Furthermore, it calls for adjusting decision-making processes and rethinking trade agreements to defend the EU's economic interests. Draghi emphasized the urgent need to address skills shortages and foster innovation to secure the bloc's economic future.

(With inputs from agencies.)