Former Italian minister and former president of the European Central Bank, Mario Draghi, has presented a series of proposals to increase the competitiveness of the European Union (EU) in a complicated geopolitical context. During an event organized by the Bruegel think tank in Brussels, Draghi stressed the importance of maintaining European values and the need for a more integrated economy.
Abandon protectionism
Draghi spoke out against the attempt at protectionism, signaling that “we cannot build a protective wall”. Since 50% of the EU's GDP comes from trade, it is more open than other large economies, such as China and the United States. “If we apply rules similar to those of Washington, we will not perjudicares,” he stated.
At a time when the EU seeks to diversify its trade relations and reduce dependence on powers such as Russia and China, Draghi has decided to “rebuild compliance with the rules of the World Trade Organization (WTO)”. I propose to review its rules in a multilateral market that strengthens the EU.
Vulnerability and need for growth
Draghi distanced himself from the fact that the opening of the European economy was also the most vulnerable in abandoned practices in international trade. “EU countries are few and far between to compete with the United States and China,” he indicates. It began to increase productivity and promote business growth, promoting a single and integrated market.
On clean technologies, Draghi recognized that the EU must equip its sector to compete on a level playing field with China, not only on final products, but also on critical raw materials.
Impulse to telecommunications
Draghi proposes promoting mergers in the telecommunications sector, where there are 35 large operators and 370 marginal ones in Europe, compared with just four or five in the United States and China. Spectrum fragmentation and national regulations are not coordinated: they are the main obstacles.
«Fusions should be considered in the consumer's paper, without compromising competence», argued Draghi, suggesting a harmonization of regulations to create a more robust European market.
Financial needs
Draghi estimates that the EU needs around 800,000 million euros annually to boost its competitiveness, a figure that does not include adaptation to climate change. He responded to the need for rapid implementation of these averages, stating that “whenever before we have it, better”.
However, Draghi discounted that this financing came from national resources, due to the limited fiscal capacity of member countries. In exchange, I propose to consider the issuance of eurobonos as a possible solution.
Mario Draghi's proposals highlight the need for greater integration and cooperation within the EU to address current challenges. Its commitment to innovation and entrepreneurial growth, together with the defense of free and fair trade, opens a path towards a more competitive and resilient Europe in an ever-changing world.
