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Former European Central Bank President and former Prime Minister Mario Draghi presented a report on competitiveness in Brussels yesterday, commissioned by Ursula von der Leyen. Draghi issued a clear and urgent warning: the European Union faces a “slow agony” if it does not adopt “radical” changes. According to Draghi, it is crucial for Europe to increase its productivity to avoid having to scale back its ambitions. In other words, if Europe does not make decisive and transformative choices, it risks being crushed between the rising influence of China and the uncertainties of the United States.
The report, which includes 170 proposals divided into three main areas, suggests:
1. Investments: Between 750 and 800 billion euros annually are needed to maintain competitiveness with the United States and China. Draghi likened this need to a double Marshall Plan, equivalent to 4.7% of the European GDP. He emphasized that without such investments, Europe’s welfare, social cohesion, and freedom would be seriously threatened.
2. Deregulation and Simplification of Procedures: Draghi proposes reducing the number and complexity of legislative texts, criticizing Brussels’ current approach, which has produced 13,000 texts since 2019, compared to 3,000 in the United States during the same period. Additionally, Draghi has criticized regulations like GDPR and the AI Act, considering them problematic for small tech companies.
3. Common Defense and Economic Strategy: Draghi highlights the need for a unified response to ensure Europe’s survival in the face of increasing external threats. He also suggests creating a common defense and revisiting nuclear energy, viewing it as a crucial component of the EU’s energy transition.
In his document, Draghi also criticizes the current management of legislation and the lack of an effective strategy for critical raw materials. He proposes replacing unanimous voting with qualified majority voting and reinforced cooperation among governments. This proposal is pragmatic but raises doubts about feasibility, as some countries, notably Italy, might not have the strength to assert their positions and influence European decisions. The importance of such influence is demonstrated by Italy’s role as a model on issues like immigration. If Italy had not been able to assert its ideas and actions in Europe, it would have been a problem for everyone.
Draghi emphasizes that his proposals are not entirely new, but the core political message is one of urgency requiring immediate and decisive action. His analysis is based on Europe’s economic decline, which is growing more slowly compared to other economic blocs like the United States and China. He proposes a new Marshall Plan, even more ambitious than the post-World War II one. Paraphrasing the Mazzinian slogan “Rome or Death,” Draghi seems to declare “Europe or Death.”
However, the report raises questions about how to secure the necessary funds. Draghi suggests using euro bonds as the only solution, but implementing this proposal is hindered by the resistance of frugal countries and the current Stability Pact rules.
Draghi’s plan, while addressing a real crisis, is criticized by some as excessive public intervention and potentially harmful. Some argue that Europe should abandon social-democratic and Keynesian policies, which they believe have contributed to current problems. There are also concerns about centralized fund management and the radical ecological approach, which could further damage production systems.
Finally, it is argued that the post-war Marshall Plan was effective partly due to a favorable economic context and minimal regulation. Some believe that Europe should return to such conditions rather than embarking on a new large-scale financing and regulatory project.
The future of Europe remains uncertain; it seems that no one is capable of steering this millennia-old story decisively. Marshall Plan or not, we must not forget the anthropological problem of Europeans, who often feel a sense of inferiority or guilt towards those around them. Never proud. It is time for change.