Mario Draghi urges for big investments in Europe to bolster competitiveness
Date
2/26/2024 3:44:21 AM
(MENAFN) Mario Draghi, the former Prime Minister of Italy tasked with preparing a report on the European Union's competitiveness, has emphasized the urgent need for substantial investments in the bloc. Speaking during a meeting of finance ministers from the 27 EU member states in Ghent, Belgium, Draghi underscored the necessity for both public and private financing to drive Europe's economic growth in the face of profound global changes.
Highlighting the significant transformations witnessed in the global economic landscape in recent years, Draghi stressed the imperative for Europe to embark on an intensive investment drive within a limited timeframe. Key areas demanding attention include the transition to green energy, combatting climate change, embracing the digital revolution, and bolstering the EU's defenses against geopolitical challenges, notably from Russia. However, these ambitious goals come against the backdrop of ongoing efforts by EU member states to reduce their debts and budget deficits, presenting a complex economic landscape.
The pressing need for investments has sparked debates within the EU regarding the feasibility of securing additional joint financing. This discussion follows the unprecedented 800 billion euro (USD866.80 billion) recovery plan implemented in response to the Covid-19 pandemic, proposed by French President Emmanuel Macron and supported by European Union Economic Commissioner Paolo Gentiloni. However, the proposal has encountered resistance from several EU countries, including Germany, raising questions about the bloc's ability to mobilize resources for future investment endeavors.
Mario Draghi's remarks underscore the urgency for Europe to adapt to evolving economic realities and position itself competitively on the global stage. The challenge lies in navigating the complexities of fiscal policy coordination among EU member states while addressing pressing societal and environmental concerns to foster sustainable economic development.
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