Draghi Urges €800bn Investment In EU’s Economy

Former European Central Bank President and Italy’s ex-prime minister Mario Draghi has released a pivotal report on the European economy, warning of severe consequences if the EU fails to address its economic challenges. Speaking in Brussels, Draghi emphasised the urgency of action, stating, “For the first time since the Cold War, we must genuinely fear for our self-preservation.”

Commissioned by European Commission President Ursula von der Leyen, the report calls for sweeping changes in economic policy and significant investments. Draghi suggests that €750-800 billion in annual investments, roughly 4.4-4.7% of EU GDP, is necessary to prevent Europe from falling further behind global powers like the US and China. This would be the largest investment-to-GDP ratio seen in Europe since the 1970s.

Key recommendations include loosening competition rules to enable market consolidation, centralising market supervision, joint defence procurement, and a push toward decarbonisation. Draghi also highlighted the need for common EU funding to support public goods, including energy infrastructure and defence.

However, the proposal has faced opposition, particularly from Germany, where Finance Minister Christian Lindner rejected the idea of pooled EU debt, citing “democratic and fiscal problems.”

Draghi warned that without decisive action, the EU risks compromising its welfare, environment, and freedoms, saying, “It’s either this, or a slow agony.”