EU Requires Immediate Economic Reform, Says Ex-ECB Head
Mario Draghi has cautioned that the EU economy must enhance its competitiveness in light of Donald Trump's presidency. Read Full Article at RT.com.
TroibNews 
The former head of the European Central Bank, Mario Draghi, has emphasized the urgent need for a significant economic overhaul within the European Union to enhance the bloc’s competitiveness, particularly following Donald Trump's election as US president. Draghi, who has also served as Italy’s prime minister, initially released a concerning assessment of the EU's economic situation in September.
In an interview with PMG on Friday, Draghi stated that although "some of [his report’s] suggestions... were urgent even before because the European economy was stagnating, they are even more urgent today." This urgency is heightened by the political climate following Trump's election.
Draghi pointed out that Brussels should prioritize the prevention of further “fragmentation of the single market and a fragmentation of the capital markets,” as the current circumstances impede European businesses from expanding and competing on a global scale.
In his September analysis, Draghi urged the EU to significantly increase its investments—more than twice the level achieved after World War II. He asserted that for Europe to "digitalize and decarbonise the economy and increase our defense capacity," the investment share would need to rise by approximately 5 percentage points of GDP, a task he acknowledged was “unprecedented.”
The Italian economist noted that the shifting geopolitical landscape and the potential for diminished US protection necessitate that the EU rapidly allocate considerable resources toward defense initiatives.
The economic situation for the EU has worsened with the abrupt loss of its key energy supplier, Russia, following the escalation of the conflict in Ukraine in February 2022. Draghi warned, "We have reached the point where, without action, we will have to either compromise our welfare, our environment, or our freedom."
To address what he referred to as the “existential challenge” facing the bloc, the former ECB president suggested that the EU consider issuing new debt.
During his campaign, Trump threatened to impose a universal 10% tariff on imports, claiming, “our allies have taken advantage of us.” In 2018, Trump had already enacted 25% tariffs on European steel imports and 10% on aluminum.
Additionally, the International Monetary Fund recently reported a decline in productivity across the EU, further complicating the region's economic outlook.
Frederick R Cook for TROIB News
In an interview with PMG on Friday, Draghi stated that although "some of [his report’s] suggestions... were urgent even before because the European economy was stagnating, they are even more urgent today." This urgency is heightened by the political climate following Trump's election.
Draghi pointed out that Brussels should prioritize the prevention of further “fragmentation of the single market and a fragmentation of the capital markets,” as the current circumstances impede European businesses from expanding and competing on a global scale.
In his September analysis, Draghi urged the EU to significantly increase its investments—more than twice the level achieved after World War II. He asserted that for Europe to "digitalize and decarbonise the economy and increase our defense capacity," the investment share would need to rise by approximately 5 percentage points of GDP, a task he acknowledged was “unprecedented.”
The Italian economist noted that the shifting geopolitical landscape and the potential for diminished US protection necessitate that the EU rapidly allocate considerable resources toward defense initiatives.
The economic situation for the EU has worsened with the abrupt loss of its key energy supplier, Russia, following the escalation of the conflict in Ukraine in February 2022. Draghi warned, "We have reached the point where, without action, we will have to either compromise our welfare, our environment, or our freedom."
To address what he referred to as the “existential challenge” facing the bloc, the former ECB president suggested that the EU consider issuing new debt.
During his campaign, Trump threatened to impose a universal 10% tariff on imports, claiming, “our allies have taken advantage of us.” In 2018, Trump had already enacted 25% tariffs on European steel imports and 10% on aluminum.
Additionally, the International Monetary Fund recently reported a decline in productivity across the EU, further complicating the region's economic outlook.
Frederick R Cook for TROIB News
