EESC CORNER: A NEW STRATEGY FOR EUROPEAN COMPETITIVENESS

In September 2024, Mario Draghi presented a crucial report outlining a strategy to enhance the EU’s economic competitiveness. Commissioned by European Commission President Ursula von der Leyen, the report tackles key challenges and proposes a comprehensive roadmap. The published report also caused a great discussion in the European Economic and Social Committee.

The report emphasizes closing Europe’s innovation gap, advocating for the establishment of a European ARPA, increased R&D funding, and reforms to attract venture capital. A focus on lifelong learning and a stronger education system aims to address skill deficits, including proposals to expand Erasmus+.

Draghi’s strategy aligns climate goals with economic growth, suggesting energy market reforms to lower costs. It advocates a technology-neutral approach to clean energy, combining renewables, nuclear, hydrogen, and carbon capture to accelerate the energy transition and enhance competitiveness.

The report highlights the importance of strategic autonomy by reducing dependence on foreign technologies and resources. Strengthening sectors like semiconductors and defence, along with developing secure supply chains, is essential for Europe’s economic resilience.

The Draghi Report identifies four essential building blocks critical for enhancing European competitiveness. First, it stresses the need for a stronger single market, emphasizing the elimination of remaining barriers and fostering seamless cross-border investments to boost economic integration. Second, the report calls for a robust industrial policy that prioritizes sectors pivotal to green technologies, digital transformation, and defence, ensuring strategic autonomy. Third, it highlights the importance of financial integration, advocating for a more unified capital market that facilitates investment flows, especially for start-ups, and channels European savings into productive ventures. Lastly, it underscores the necessity of improved governance and cooperation, suggesting enhanced coordination among EU member states and clear governance frameworks to ensure consistent and effective implementation of strategic initiatives. These elements collectively form the foundation of a sustainable, resilient, and competitive European economy.

The 2024 Draghi Report provides a bold vision for the future of European competitiveness. By focusing on innovation, sustainability, economic security, and cohesive integration, it sets an ambitious agenda that will require strong political will and collaboration across the EU. Draghi’s recommendations lay out a path to strengthen Europe’s economic foundations, making it more resilient and competitive in a rapidly evolving global landscape.

Isn’t now the right time for a New European Industrial Deal based on Draghi’s recommendation? I believe so.