Mario Draghi Calls for Coordinated EU Industrial Policy to Compete with US and China

Former European Central Bank chief Mario Draghi's report highlights the urgent need for the EU to adopt a coordinated industrial policy, increase investment, and accelerate decision-making to keep pace with the US and China. He warns of economic stagnation and calls for significant fiscal and regulatory changes.

The European Union must adopt a more coordinated industrial policy and make faster decisions to remain competitive with the United States and China, Mario Draghi stated in his long-anticipated report on Monday.

The EU Commission tasked the former European Central Bank chief to analyze how the bloc could sustain its transition to a green, digital economy amid growing global tensions. Draghi outlined urgent recommendations, including an annual investment of 750-800 billion euros, about 5% of EU GDP.

Pointing to increasing trade protectionism, loss of cheap energy from Russia, and demographic challenges, Draghi urged EU nations to act collectively. He emphasized that without significant efforts, the EU risks economic stagnation.

(With inputs from agencies.)