Mario Draghi worried about Europe becoming “a wall of customs taxes”

Former Italian Prime Minister Mario Draghi said on Wednesday he wanted to prevent Europe from becoming “a wall of customs taxes”in a context of tensions between China and the EU around surcharges on electric vehicles from Beijing. “The strategy of building a wall of customs taxes around the European economy is not feasible”said the former president of the European Central Bank (ECB) in Paris on Wednesday, invited to speak at the headquarters of the International Energy Agency (IEA).

“We have derived much of our prosperity from the opening of markets around the world”also estimated Mr. Draghi, author of a report published at the beginning of September on the competitiveness of the EU, recalling that half of the wealth created by the European Union comes from trade while it is less than 30% for the United States. “We would harm ourselves” by following the path of protectionism, the Italian official had already said at the end of September, who notably recommends in his report to defend oneself through innovation.

Without an alternative strategy to protectionism, “the great powers can retaliate against us much more easily because we are so open”continued Mr. Draghi on Wednesday, alluding to the Chinese response to European customs taxes on electric vehicles announced at the beginning of October. Beijing has already announced retaliatory measures against cognac imported from Europe and could crack down on other sectors.