European economy faces 'existential challenge,' Draghi warns Europe!
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- Опубліковано 16 вер 2024
- Subscribe here: bit.ly/eudebates Mario Draghi urges EU to catch up rivals or face 'slow agony'! The European Union needs far more coordinated industrial policy, more rapid decisions and massive investment if it wants to keep pace economically with rivals the United States and China, Mario Draghi said on Monday in a long awaited report.
The European Commission asked the former European Central Bank chief and Italian prime minister a year ago to write a report on how the EU should keep its greening and more digital economy competitive at a time of increased global friction.
"The situation at the moment is really worrisome," Draghi told a news conference in Brussels.
"Growth has been slowing down for a long time in Europe, but we've ignored (it)... Now we cannot ignore it any longer. Now conditions have changed."
Trade protectionism was increasing, the supply of cheap energy from Russia was gone, the bloc needed to pay more for its defence, and its population was shrinking.
In his nearly 400-page report, Draghi said the bloc needed investment of 750-800 billion euros ($829-884 billion) per year, up to 5% of GDP - far higher even than the 1-2% of EU GDP in the Marshall Plan for rebuilding Europe after World War Two. And the bloc must act on several fronts.
"It's 'Do this' or it's a slow agony," Draghi warned.
EU countries had already responded to the new realities, Draghi's report said, but it added that their effectiveness was limited by a lack of coordination.
Differing levels of subsidies between countries was disturbing the single market, fragmentation limited the scale required to compete on a global level, and the EU's decision-making process was complex and sluggish.
The report suggested so-called qualified majority voting - rather than a need for unanimity - should be extended to more areas, and as a last resort that like-minded nations be allowed to go it alone on some projects.
While existing national or EU funding sources will cover some of the massive investment sums needed, Draghi said new sources of common funding - which countries led by Germany have in the past been reluctant to agree to - might be required.
German Finance Minister Christian Lindner said joint borrowing would not solve EU problems and Germany - the biggest economy in the 27-nation bloc - would not agree to it.
Analysts said the EU may well drag its feet on Draghi's suggestions.
"Political difficulties in Germany and France, and longstanding divisions among other EU member states, will likely prevent a significant leap forward in integration that Draghi prescribes," analysts at Eurasia Europe said.
"Furthermore, recent political developments in France, notwithstanding (Michel) Barnier's appointment as PM last week, make us much more sceptical about the EU’s capacity to deliver meaningful fiscal ambition..."
SMARTER REGULATION
Draghi also said EU antitrust regulators should base merger approvals not just on competition within EU borders, but on whether a takeover could boost innovation in sectors, such as technology, where scale is critical to compete. Security and resilience should also carry more weight, he said.
The report also featured proposals for 10 economic sectors, including energy, AI, pharma and space.
EU growth had been persistently slower than that of the United States in the past two decades and China was rapidly catching up. Much of the gap was down to lower productivity.
If the EU maintained its average labour productivity growth since 2015, it would only be enough to keep GDP constant in 2050, Draghi said. However, the bloc needs greater wealth to cover decarbonisation, digitalisation and strengthening its defence.
Draghi's report comes as the issues he raised - lack of investment, loss of cheap energy and changing demographics - are casting doubt on the economic model of Germany, once the EU's growth engine. Volkswagen (VOWG_p.DE), opens new tab, Europe's biggest carmaker and one of Germany's industrial keystones, said last week it was considering its first plant closures there.
Draghi said the EU was struggling to cope with higher energy prices after losing access to cheap Russian gas and could no longer rely on open foreign markets.
The former central banker said the bloc needed to boost innovation and bring down energy prices while continuing to decarbonise as well as reduce its dependencies, notably on China for essential minerals, and increase defence investment.
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Thanks for sharing. We need to save the continent.
Just a warmonger on Blackrock's payroll
Mario Draghi non fa la spesa al supermercato e quindi non si è accorto che i cittadini europei comprano quasi esclusivamente prodotti europei 😅
pro american guy
M.r Draghi all respect and cooperation ❤
He is more like competitivness not cooperation. There won't be join plan if the taxation money is put in private pockets of competitive people.
You make EU " finito " , not " grand" .
Draghi the butcher meanwhile just like Rome the eu is burning down
Another report for the dust bin. No better man to construct such a report than an unsuccesful former Italian prime minister. For another attempt to create common European bonds. Question: how many STEM engineers does Europe have compared with China and the US to succeed in all those challenges? No lack of politicians, plans and bureaucrats though.
Look further into his background and you see Goldman Sachs.
Drop the green agenda
Maybe tone down the ambition. The electricity grid capacity needs a reinvestment first
Okay, Draghi has a point, so where is the grand open source strategy to boost our digital sovereignty?
We need more able, rational political representatives like Dragi in Europe. We need to get serious.
This man is the reason behind Europe's collapse and desolation.
Anyone with a little sense sees that this is not in European interests. With all due respect, you are responsible for the way things are, and this policy is going to ruin us financially. Be yourself and don't follow the dollar.
Two major challenges are freemasonry and the corription it provokes.
Insider trading for decades
If only the UK will be allowed to charge VAT over financial services
We have a health care system on its knees. Obviously you are going private.
Where is that?
Draghi is becoming Mr Burns in Simpsons
Dont take it seriously, europe is just doing fine.
We are not blind. We can see and feel it. The question is: get the job done. Europe lost control of everything. Because of selfish behavior and plenty of naive and wishful thinking. When you can't keep your best scientists and engineers you can't compete. We lost our industrial manufacturing complex because we didn't automate enough and sold to other manufacturing markets.
I fear nothing will happen. The politicians will further more create tax paradises for lobbyists and we the european citizens and voters will further on suffer.
Why pay him one of the eu disaster to fix it.
A lot of money get rid off.
Never i see such a bad political people.
Draghi is the chairmen.
Keep off him out.
Don't we overreact with these defense expenses by shifting money away from important economical developments and innovation incentives?
Thank you for articulating it for me.
"*God Bless Everyone Take Care All Long Lives 100 years and above all*"
"*Thank You @ Like Soul*"
I didn’t get it? And also sorry for my bad english grammar by the way?
No mention to lower taxes
Censorship is rife on this YT channel. Can't say anything negative
You are offending the hard working public servants.
I was censored because of polite criticism of renewables.
@@john-olofbauner6494 I was censored because I mentioned censorship.
I WANT GO TO EUROPE
Jump on the next dinghy! 🤣
EU .. waiting the EU to create its twitter and facebook!
👏So we see. If that was the 21st centuries mission, well done dear all, really well done👏. Ruining all what elders worked and sweat for, plus ruining all what youngers dreamed and hoped for👏. At least you shall say "Mission accomplished"👍
Europe grew when it was free trading but decentralized/sovereign. We are a continent of overbearing nanny state rules for US and Chinese firms to throw products at. legacy European firms arnt innovating, they are instead leaving and now we are too busy allowing in migration by the boatload (socially and economically kneecapping us) instead of looking to facilitate developmental policies nation by nation so real European money can be made by European peoples to create a new era of great European innovation
Let people around the world trace their ancestors. Let them spend their superannuation balances with the EU. Its made too hard for Over 35s. Yet the desire is there to spend 50-dead in Europe. Huge 🤑 per capita wanting to come to Europe. It's built....let them come. Its like rolling waves of that demographic in Mamma Mia 1 & 2. Not ancient yet and definately not dead yet either. Embrace their wish to spend retirement in Europe. Lots of business in that.
Brillante 🎉
Blah blah blah
The parasites have no idea why the host is dying.
Le "sfide essenziali" sono il riarmo dell'Europa?
@13:57 this guy is a fraud ! What about inflation redaction act?
Oh, so now you realize this?
"수퍼 마리오"(명예로운 닉네임) 의 말씀을 경청하시기 바라옵나이다....(^^)
5 yrs po ninyo try na magawa nang tama. Sa federal mga anak lng namin kayo bahala sa kanila kasi my tendency sa bansa europa at America sila mamalagi in future
Keep attention to liberists....
Brown Susan White James Robinson Cynthia
Putin should allow ★彡[🦋✨ş𝐭𝑟ﺂķ𝖾ş✨🦋]彡★ deep inside eu
No war. Peace with Russia. Repair the Nordstream. Lift sanctions. We buy the same Russian oil now just comes on ships at a 4x price! Plus no to USA LNG! Free studies on universities with one condition! Must work in Europe for 10 years! Push R&D, push renewables 10x of the current speed with storage! Improve the grid!