In a difficult economic context, marked by a disconnect with the United States and increased Chinese competition, Mario Draghi, former president of the ECB, is sounding the alarm. In his long-awaited report, he calls for a “radical change” for the European Union, through the issuance of new common debt, a more unified industrial policy and a strengthening of defense.
The highly anticipated Draghi report had been delayed by several months. It is being published in a context where Europe has suffered a sharp economic decline compared to the United States and where Chinese competition is intensifying. For the past year and a half, the European Union has been plunged into prolonged economic stagnation, having weathered the 2020 pandemic crisis less well than the United States, as was already the case after the 2008 financial crisis. To remedy this, the former Italian Prime Minister is proposing a “radical change”.
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“For the first time since the Cold War, the European Union must genuinely fear for its survival, and the need for a unified response has never been more pressing.”he says. The former president of the European Central Bank (ECB) recommends issuing new common debt to finance key sectors such as innovation, ecological transition and defense.
“The investment needs are colossal”Mario Draghi hammered home at a press conference in Brussels, putting forward annual amounts of 750 to 800 billion euros, more than the United States’ Marshall Plan after the Second World War.
The red line of the common loan
He recalls the success of the historic €800 billion post-Covid recovery plan, calling on the EU to “continue the issuance of common debt instruments to finance shared investment projects aimed at strengthening the competitiveness and security of the Union”. Draghi also highlighted the ” ditch “ which has deepened with the United States and the need to free itself, at least partially, from dependence on China for the development of renewable energies.
However, the idea of a new common loan, although supported by France, remains a red line for several northern European countries, including Germany and the Netherlands, which fear[…]
- challenges.fr
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