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A Critical First Response to Mario Draghi’s Competitiveness Report

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A Critical First Response to Mario Draghi’s Competitiveness Report

What is says, what it means – and is it feasible?

CEPS,

5 min read
3 take-aways
Audio & text

What's inside?

The EU must undertake major reforms, or its economy will lag behind those of the United States and China.

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Editorial Rating

8

Qualities

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Recommendation

The European Union is failing to meet challenges that impede the bloc’s economic potential, according to the Draghi Competitiveness Report, compiled by former Italian prime minister and European Central Bank president Mario Draghi. These challenges include an inability to create a single market and to coordinate industrial, competition, and trade policies. Policy expert Jacques Pelkmans assesses the report’s findings in this astute critique that executives and financial professionals will find useful.

Summary

The Draghi report is ambitious in its scope.

A book-length monograph, the Draghi report encompasses several issues, highlights interdependencies, and argues that regional division creates a costly inefficiency that precludes economic growth. To regain competitiveness, EU officials must recognize that the status quo can no longer hold and that major reforms are necessary for the bloc’s economic improvement.

To enact a new industrial strategy, EU members must embrace innovation, address energy costs while pursuing a green transformation, and mitigate economic dependencies that could turn into geopolitical risks. This strategy calls for the full adoption of the EU single market; an alignment of trade, industrial, and competition...

About the Author

Jacques Pelkmans is an associate senior fellow at the Center for European Policy Studies.


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