Former Italian Prime Minister and central banker Mario Draghi is set to release a groundbreaking report on EU competitiveness today, promising “radical change”. The report, delayed from June, comes at a crucial time in the EU political cycle and is expected to set the tone for the next term just days before European Commission President Ursula von der Leyen assigns new responsibilities to her team.
Draghi, known for his commitment to defending the euro currency during his time at the European Central Bank, has hinted at some of the key points in his report, focusing on the productivity gap with the US and the need to respond to subsidies from the US and China for strategic green technology. He is expected to address climate change, social inclusion, and recommendations for key sectors such as defense and energy.
One major question surrounding Draghi’s report is how he plans to fund his proposals. Suggestions have included reserving national subsidies for EU projects or utilizing loans from the European Stability Mechanism. More controversial proposals, such as common borrowing via Eurobonds, could face opposition from various political factions.
The report may serve as a wake-up call to a complacent Brussels, urging for reforms that could face challenges from both the right and left wings of the political spectrum. Draghi’s findings are anticipated to shape the upcoming term for the European Commission and could lead to significant changes in EU policies and priorities.
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