Brussels (The Brussels Morning Newspaper) – The ex-Italian prime minister Mario Draghi suggests “radical change” as the bloc confronts aggressive competition from China and the US.
Ex-Italian Premier Mario Draghi has called for joint EU borrowing and an end to national vetoes in a landmark report on economic competitiveness delivered to the EU executive. The long-awaited declaration, originally due in June, offers a “new industrial strategy for Europe”, stating that the era of open, rules-based trade is on its way out.
His findings, prepared with the aid of European Commission officials, come just days before its President Ursula von der Leyen is due to set out the responsibilities of top lieutenants for her next five-year mandate.
What Radical Changes Did Mario Draghi Propose for the EU?
“The EU should move towards regular issuance of common safe assets to enable joint investment projects among member states and to help integrate capital markets,” the report stated – a stage towards the controversial idea of Eurobonds, in which member states point collective debt.
What Measures Are Needed to Counter China’s Green Tech Subsidies?
In April, Draghi pledged “radical change” amid growing concern over a tremendous productivity gap with the US, where incomes have grown twice as much as the EU’s since 2000, Draghi stated. He’s suggesting more aggressive measures in reaction to the massive green tech subsidies offered in China and the US. “A joint plan for decarbonization and competitiveness could entail, in specific circumstances, defensive trade measures to level the playing field globally and offset state-sponsored competition abroad,” the report stated.
Is the Era of Open Global Trade Over for the EU?
“The era of open global trade governed by multilateral institutions looks to be passing,” he said, pledging to conform the screening of foreign direct investment, given worries that China is hoovering up expertise required for European innovation and security.
Draghi has some tough notes for the European Commission, which he states needs to exercise more “self-restraint” in regulating. “The Commission’s legislative activity has been increasing excessively,” he said, stating that over half of small- and medium-sized companies grumbled over paperwork and regulatory obstacles.
