«Let us act together as never before. I will propose a radical change”

A shock to Europe. Mario Draghi at the European conference in Belgium on social rights he asks the EU for an effort on the issue of competitiveness. «There is a need for radical change in the European Union – says the former prime minister – Our investment rules are built on a world that no longer exists, the pre-Covid world, pre-war in Ukraine, pre-crisis in the Middle East. And we find ourselves in a world in which rivalry between the great powers has returned.” The look is at United States and China: «We have never had an industrial strategy to respond, despite the positive initiatives underway, we still lack a global strategy on how to respond in multiple sectors. We trusted in the global level playing field and the rules-based international order, expecting others to do the same. But now the world is changing rapidly, it has taken us by surprise and others no longer respect the rules and develop policies to strengthen their position.”

The policies of powers like Beijing and Washington “are designed to redirect investment into their economies to the detriment of ours or, at worst, are designed to make us permanently dependent on them,” he highlighted. Dragonsciting Beijing’s example of green technologies and large-scale US industrial policy to attract high-value domestic manufacturing capabilities within its borders, including that of European companies, deploying its geopolitical power to reorient and protect supply chains. We lack a strategy on how to protect our traditional industries from the unlevel global playing field.”

Integration

Draghi talks about the need to accelerate integration: «If not among 27, among those who want to do it», a reference to the path of strengthened cooperation between a small number of countries to conclude the Capital Market Union. «We do not have the luxury of being able to postpone decisions, to ensure coherence between the different instruments to relaunch the competitiveness of the EU we need a new strategic instrument to coordinate economic policies. What I will propose in my report is a radical change: this is what we need. We must achieve a transformation of the European economy, we must be able to rely on a decarbonised energy system, a European integrated defence, domestic production in the most innovative sectors and a leading position in technological production”, adds Draghi.

The EU is late

The former prime minister underlines some limitations, including those in the tech world where «we only have four companies out of the top 50. Or in telecommunications, where we have 34 national mobile companies, while the USA has 3 and China 4. And the result is that we are behind on 5G.”

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