Former European Central Bank chief Mario Draghi has conducted a study on behalf of the EU regarding European competitiveness. Draghi’s study reveals that the EU is lagging behind the US and China in terms of economic growth and innovation. He highlights the need for investments in digitization, decarbonization, and armaments to compete internationally.
Draghi proposes increasing investment relative to economic output by 5 percentage points, which would require an additional spending of €750-800 billion annually. He suggests launching a new ‘Marshall Plan’ to support these investments, as private companies alone may not be able to achieve this level of investment. Draghi emphasizes the importance of focusing on industry, research, education, strategic trade policy, securing raw materials, autonomy in key technologies, and military power.
Europe is facing challenges such as slow productivity growth, lack of investment in new technologies, and fragmentation of national markets. Draghi warns that if productivity growth remains stagnant, EU-27 GDP will not grow by 2050. He also highlights the declining competitiveness of European industries in areas such as artificial intelligence and quantum computing.
Decarbonization is another key area of focus for Europe, as Draghi notes that energy prices in Europe are hindering investment. He emphasizes the need for investment in ‘clean tech’ to make energy production cheaper and create innovative products with global market potential. However, China has taken the lead in many green technologies, posing a challenge to European industries.
In terms of militarization, Draghi points out the need for increased defense spending in the EU to address strategic vulnerabilities. He criticizes the reliance on the US for defense and calls for the development of advanced military technologies in Europe. Draghi’s report reflects a strategy adapted to the tendencies of modern capitalism, emphasizing the importance of imperialist competition and military power in the global arena.
Despite Draghi’s proposals for a more centralized European approach to competitiveness and defense, the challenges of intra-European national contradictions remain. The fragmented nature of European capitalism and competing national interests pose significant obstacles to achieving a unified imperialist power in Europe.
In conclusion, Draghi’s report highlights the urgent need for Europe to address its competitiveness challenges through increased investment, innovation, and strategic planning. However, the underlying contradictions of capitalism and competing national interests within Europe may continue to hinder the realization of Draghi’s vision for a more competitive and militarily strong Europe.
