Former ECB President Draghi Highlights EU’s Deficit In Innovation And Skills

Ahead of the release of his much-anticipated report, former European Central Bank President Mario Draghi has warned that the European Union is lagging behind its global counterparts. On Wednesday, Draghi outlined key challenges facing the bloc, including insufficient innovation, high energy prices, and a skills gap.

Draghi was tasked by the European Commission last year to examine how the EU can keep its economy competitive while advancing its green agenda amid rising global tensions. The report, which is set to be unveiled on Monday, is expected to be a cornerstone in the debate over EU competitiveness—a major concern for the next European Commission due to take office later this year.

Call for Accelerated Digital Transformation

In a closed-door session with EU ambassadors and European Parliament leaders, Draghi highlighted the critical need for the EU to accelerate its digital transformation. He argued that achieving the necessary “radical change” would demand a greater role for the private sector and enhanced collaboration between EU institutions.

The comprehensive report, estimated to be around 400 pages, will address the EU’s productivity challenges compared to global competitors. It will also examine the need to reduce reliance on essential battery minerals from China and tackle climate change issues. Draghi’s findings are expected to include recommendations for ten major economic sectors.

Previously, Draghi has argued that the EU needs to respond more dynamically to global competitors who are not adhering to traditional international rules. He has emphasized the importance of shifting focus from internal EU competition to a broader global perspective to strengthen the EU’s competitive edge.

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