Draghi warns of urgent reforms needed for EU to compete globally

(MENAFN) The European Union is facing critical challenges that require immediate and substantial reforms to maintain its competitive edge against global economic powerhouses like the United States and China. According to a comprehensive memo from Mario Draghi, former president of the European Central Bank and former Italian Prime Minister, the EU must address several key areas to bolster its economic growth. Draghi's report, spanning approximately 400 pages, outlines the need for deeper industrial policy cooperation among member states, expedited decision-making processes, and significant investment inflows. He emphasizes that the EU requires annual investments between 750 and 800 billion euros (about USD829-884 billion), equivalent to up to 5 percent of its gross domestic product (GDP), to effectively stimulate growth. This figure starkly contrasts with the 1-2 percent of GDP allocated during the Marshall Plan for post-World War II reconstruction.

Draghi, speaking at a news conference in Brussels, expressed deep concern over the current economic situation, noting that Europe's growth has been stagnating for a prolonged period. He highlighted the urgency of the situation, warning that failure to implement these necessary reforms could lead to a "slow death" for the European bloc. The memo criticizes the EU's existing approach, pointing out that ineffective coordination, political fragmentation, and a cumbersome decision-making process are impeding progress. Draghi's analysis calls for a cohesive strategy to address these issues, arguing that without significant changes, the EU risks falling further behind its global competitors. 

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