La of your digital ecosystem. , the economic growth , competitiveness ofEurope they are at risk. Innovation , decarbonization e defense These are the three priorities on which the Union must urgently focus, as underlined Mario Draghi in his speech in Parliament, to illustrate his European Competitiveness Report, Already presented in Brussels. The former ECB president, who is also a special advisor to the president of the European Commission, highlighted the need for immediate action to address global challenges and ensure a prosperous future for the continent. With an ambitious plan of 800 billion euros, Draghi has charted the course for Europe's recovery, calling for a rapid and coordinated response so as not to be left behind.
"Our security is now being called into question by the change in foreign policy of our major ally towards Russia, which, with the invasion of Ukraine, has shown itself to be a concrete threat to the European Union. The directions of the new administration have dramatically reduced the time available," Draghi said in the Sala Koch of Palazzo Madama.Europe is more alone today in international forums”.
Draghi's speech comes six months after the presentation of the Report, in an international context shaken by the unexpected axis between Trump and Putin, and on the very day of the announcements of Giorgia Meloni to the Chambers, at 14 pm, in view of the European Council of 30 and 20 March, which will define the position of the Twenty-Seven on support for Ukraine and common defence.
Draghi: “Europe is at risk, structural reforms are needed”
“The European Union has for decades guaranteed its citizens peace, prosperity, solidarity and, together with its American ally, security, sovereignty and independence. These are the founding values of our European society. Today, however, these values are being called into question,” Draghi added. He stressed that low economic growth, aggravated by protectionist policies of the United States, is upsetting the order of international and commercial relations, with a strong impact on Italian and European companies. And the economic stability of the Old Continent itself is at risk: "The data that best summarizes the persistent weakness of the economy of our continent is the amount of savings that leave the European Union every year: 500 billion euros in 2024 alone,” he declared. An alarming signal that, according to the former prime minister, highlights the urgent need for structural reforms.
Energy: We pay more than others (and not by a little)
One of the points Draghi focused on is the energy cost. And here the comparison with the United States is merciless: "Wholesale electricity prices continue to be 2-3 times higher than in the US". In Italy, the situation is even worse: "In 2024, wholesale electricity prices were on average 87% higher than those in France". And that "final prices to consumers are also affected by taxation, in Italy among the highest in Europe". In short, the Italian companies they start at a disadvantage compared to foreign competitors. “Not only is the survival of some traditional sectors of the economy at risk, but also the development of new high-growth technologies. Consider, for example, the high consumption needed for data centers.”
And this is why, according to Draghi, "a serious policy to relaunch European competitiveness" cannot but have as its first and main objective "Reducing bills for businesses and families".
SolutionsDraghi listed several: from the use of the "purchasing power of the European Union to lower gas costs", to the "transparency of energy markets" to avoid speculation, up to the simplification bureaucratic for the renewable. “It is certainly necessary to accelerate the development of clean generation and invest extensively in flexibility and networks. But it is also necessary decoupling energy prices produced by renewables and nuclear from that of fossil fuel energy.”
European rules: too many and too complicated
Another crucial point touched upon by Draghi is the bureaucracy that suffocates innovation. Draghi described a European Union that, over the past twenty-five years, has produced “100 laws focused on the high-tech sector and 200 different regulators in the Member States”.
“It's not about proposing wild deregulation, but just a little less confusion,” Draghi said. The problem is that each state often adds national rules to the European ones, creating a bureaucratic jungle that slows down growth. He then recalled a study by the International Monetary Fund that quantified the negative effect ofover-regulation, which creates internal barriers to the single market. “We cannot therefore be surprised if our most brilliant inventors choose to bring their companies to America,” he observed, stressing that the creation of a market unique eclecticism services It is the key to attracting investment and relaunching innovation.
Europe's Delay in Artificial Intelligence
In this context, Europe risks losing ground in strategic sectors, such asartificial intelligence, where the United States and China dominate. “We have a single market for toothpaste, but not for artificial intelligence,” he quipped, suggesting that only a unified and less bureaucratic digital market will allow European start-ups to grow and compete with global giants.
The Report, in fact, suggests that Europe should focus on a capital market that can direct savings towards the most dynamic and innovative start-ups, overcoming the fragmentation of the European market.
Common EU defense as an “obligatory step”
In Draghi's speech there is also space to talk about the rearmament plan announced by Ursula von der Leyen. According to the former prime minister, “the current European defense procurement, worth approximately 110 billion euros in 2023, should be concentrated on a few advanced platforms instead of numerous national platforms”. The fragmentation, Draghi observes, has so far proven incredibly harmful, given that “despite overall investments that are still high, EU countries ultimately purchase most of their military platforms from the United States”.
In addition to increasing the investments, however, there is to build a real European defense, with “a top-level chain of command that coordinates heterogeneous armies” and that “is able to detach itself from national priorities by operating as a continental defense system”. In his speech, Draghi described the construction of “a common defense of Europe” like “a obligatory passage to make the best use of the technologies that will have to guarantee our safety". And to succeed, the former prime minister further specified, "the recourse to common debt it is the only way”. “National interventions at the expense of welfare would be the negation of the European identity that we want to protect” he said.
Translated: Europe must stop acting as a collection of nation states and adopt a unitary vision, with a common strategy to address global challenges.
And for those who still had doubts, Draghi closed with a warning: “The decisions that the Report calls Europe to make are even more urgent today.” In other words, time is running out.
