EU is losing ground in global competitiveness: Mario Draghi

EU lagging behind: Mario Draghi, former European Central Bank chief, has raised alarms about the European Union’s waning competitiveness on the global stage. Speaking to policymakers on Wednesday, Draghi highlighted several challenges, including stagnant innovation, soaring energy costs, and skills shortages.

A year ago, the European Commission tasked Draghi with examining how the EU can maintain its competitive edge while transitioning to a greener economy amidst rising global tensions with China and the United States. His comprehensive report is scheduled for release on Monday and is anticipated to influence discussions on EU competitiveness, a key focus for the upcoming European Commission.

Digital shift essential

During a closed-door session with EU ambassadors and European Parliament leaders, Draghi elaborated on the bloc's hurdles but withheld specific solutions until the report’s publication. He stressed the need for rapid digital transformation, a robust private sector role, and enhanced cooperation amongst EU institutions.

The forthcoming 400-page report will address the EU’s productivity gap with its global competitors, the necessity to reduce dependencies on critical resources such as battery minerals from China, and the challenges posed by climate change. It will also offer recommendations for ten key economic sectors.

Draghi has previously advocated for a more agile response to global rivals who are deviating from established international norms, suggesting the EU must prioritise global competitiveness over internal EU disputes.

(With Reuters Inputs)