Former Italian Prime Minister and Economist Mario Draghi warns that the European Union faces an existential challenge if it doesn’t change. Draghi’s report on competitiveness highlights the EU falling behind the US and China’s rapid progress, with declining real disposable income per capita. The aging population and economic challenges pose threats to Europe’s social model, necessitating quick action in areas like decarbonization, AI, and geopolitical stability.
Huge investment needs
Draghi’s report identifies 170 proposals, emphasizing the importance of skilled workforce development, research investment, completing the internal market, reducing electricity bills, and tackling bureaucratic hurdles. Member states must review competition rules, align trade policies, invest in clean and digital technologies, and enhance defense capabilities amid global uncertainties.