Draghi's Call for EU Economic Overhaul: Coordinated Policy and Massive Investment Needed

Mario Draghi's newly released report urges the European Union to adopt a more coordinated industrial policy, make more rapid decisions, and increase investment by up to 800 billion euros annually to stay competitive with the United States and China. The report highlights the need for policy efficiency and reduced energy prices.

In a highly anticipated report, Mario Draghi has called for the European Union (EU) to significantly overhaul its current industrial policies, emphasizing the need for far more coordination, quicker decision-making, and substantial investments to maintain economic competitiveness with the United States and China.

Commissioned by the European Commission a year ago, Draghi's report stresses that the EU requires annual additional investment of 750-800 billion euros to keep pace, a substantial increase from its current levels. He underscored the need for refocusing EU efforts on the most pressing issues, enhancing policy coordination, and adapting governance procedures to allow for faster progress among member states.

Draghi's findings point to lower productivity and higher energy prices as primary hurdles in the EU's growth. He highlighted the necessity to boost innovation, reduce energy costs, decarbonize, and decrease dependencies on nations like China for essential minerals. The report comes at a critical time, as the EU grapples with economic challenges exacerbated by geopolitical tensions and energy price surges.

(With inputs from agencies.)