«Restoring our competitiveness is not an objective that we can achieve alone, or by beating each other – it is one of the key concepts – It requires us to act as a European Union, as we have never done before». Investment rules are built “on a world that no longer exists.” After Covid and the wars “we find ourselves in a world in which competitiveness has returned between the great powers”, to the point that “other countries do not respect the rules» and Europe was «taken by surprise». The EU states cannot continue to wage war on each other, they must join forces and agree on “an overall strategy” for a new Union, “no less ambitious than that implemented by the founding fathers 70 years ago”.
Draghi addresses the issue of protectionism with which the United States tries to cut off competition and denounces the danger of China, with Beijing which «aims to capture and internalize all parts of the value chain in advanced and clean technologies and to ensure access to the necessary resources”. Processes and appetites that “undermine our industries” and have the aim of making the European economy “dependent”. The analysis is merciless. “It’s not competitiveness that is flawed as a concept, it’s Europe that has focused on the wrong things.” Even in crucial sectors such as defense and energy, EU countries have related to each other “as competitors”, turning their gaze inwards rather than outwards.
An industrial plan is neededan industrial deal that Europe has never had. A strategy for leadership in new technologies is urgently needed. In digital, Draghi observes, “only four of the top 50 players in the world are European”. And if traditional EU companies are unable to compete it is because elsewhere energy costs are lower, regulatory burdens are lower and state subsidies are often large. Result? Many companies are leaving Europe. The transformation that Draghi has in mind will have to pass through the entire European economy: «We must be able to count on decarbonised and independent energy systems, on an integrated and adequate defense system at EU level, a leadership position in deep-tech and digital innovation…».
There are ten macro-sectors of the report which will be delivered to the new Commission in June and there are three common threads, which require a reflection “on what we want to do together and what to maintain at a national level”. The first macro-sector is to “encourage economies of scale”, from defense to telecommunications, because it is not possible for there to be “34 groups of mobile networks” in Europe. The second common thread it is the provision of public goods in those sectors, such as energy and high-performance computers, where it is worth “getting our act together”. And here Draghi indicates “the progress of the Capital Markets Union” as a fundamental aspect of the strategy. The third common thread is to «ensure the supply of essential resources and inputs» in the field of critical raw materials, fundamental for green and digital transitions. Draghi thinks of “a new strategic instrument” that coordinates economic policies and, if it is not deemed possible, urges us to evaluate “the possibility of proceeding with a subset of member states”. But it would be the last resort, for a leader convinced that “political cohesion requires us to act together, always if possible”.
Von der Leyen is convinced that Draghi’s report on competitiveness and Enrico Letta’s on the single market “will show us the way for the future”. Victor Orban’s reaction was surprisingly positive. «I like Draghi». Will he be president of the EU Commission? “I don’t know, but he’s good.”
Emma Bonino would like to see him instead of Michel, even if those who know him well exclude that the former prime minister aspires to lead the EU Council. Ignazio La Russa recognizes that Draghi “certainly has the qualifications to aspire to every role”, while Francesco Lollobrigida appreciates above all that he underlined “the mistakes of the past”. Is he the right personality to lead Europe? “They are all right to propose a change of pace.”
