The former Italian prime minister proposes saving the economy “whatever the cost.”
Former Italian Prime Minister Mario Draghi will present this Monday a long-awaited report on EU competitivenesswhich promises to offer a new vision of the economic capacity of the old continent.
Its conclusions, which should have arrived in June, are being published late at a key moment in the EU’s political cycle. The report will set the tone for the next legislature a few days before the President of the European Commission, Ursula von der Leyenhand over his duties to his new group of lieutenants.
Save the block economy
During his eight years at the head of the European Central BankDraghi promised to do “whatever was necessary“to defend the euro from market turbulencebut now Von der Leyen has entrusted him with the task of save the entire economy of the block.
He has already given some clues about the content of his hundreds-of-page report, which is being prepared with the help of staff from the European Commission.
It will undoubtedly highlight the growing productivity gap with the United Stateswhose economy is now 50% larger than that of the EU, although 15 years ago both were equal.
In April, Draghi also spoke of the need to respond to the massive subsidies paid by the US and China to strategic green technology, which challenge the global trade order.
What does the report include?
Leaks from his briefing with EU ambassadors last week suggest he will also discuss the reduction of the block’s dependence on the outsidehe climate change and social inclusion, and will detail recommendations for ten key sectors, such as defense and energy.
In this sense, it is possible that many of his conclusions echo those he formulated at the beginning of the year Enrico Lettaanother former Italian prime minister who had been entrusted with the task of finding formulas to boost the EU single market.
One of the main unknowns is how Draghi, who He presided over the technocratic Government of Italy between 2021 and 2022, plans to finance his plans.
In April, Letta suggested reserving a portion of national subsidies for EU projects, or use loans from the European Stability Mechanisma fund originally intended for the banking sector, to finance defense.
Any other proposal from Draghi – such as common debt through Eurobonds – could prove to be the most controversial and discussed element of his plans. His conclusions will probably confront the criticism from the rightwho will say that he ignores the impact of immigrationand from the left, which claims it is trying to deregulate and cut workers’ salaries.
But it will also have to overcome institutional inertia; many describe the report as wake up call to a complacent Brussels. He EU Councilwhich brings together Member States, has previously blocked many market reforms. But you can also ask for a reorganization of the Commissionthe EU Executive responsible for proposing new laws.
Von der Leyen may end up copying and pasting his plans into the mission cards he gives to his new Commissioners Wednesday, which could define his five-year term.
