Draghi report

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Draghi report
Draghi report cover.svg
Author Mario Draghi
Original titleThe future of European competitiveness – A competitiveness strategy for Europe
Publication date
9 September 2024

The Draghi report is a 2024 report addressing European competitiveness and the future of the European Union. Authored by former ECB president and former Prime Minister of Italy Mario Draghi, it was one of two widely anticipated reports on EU reforms in 2024, together with the report on the EU internal market by Enrico Letta. [1] [2] [3] [4]

Contents

Parts of the Draghi report's proposals have already been adopted by European Commission president Ursula von der Leyen for the work programme of her 2024–2029 Commission term. [5] [6]

Content

Competitiveness

Draghi's report urges the EU to foster more investment to increase European productivity. The report proposes new prudential rules for banking and institutional investors to facilitate risky investments. [7] Draghi warned that if the EU failed to catch up with its rivals, it would face "slow agony". He wrote that the EU "needs far more coordinated industrial policy, more rapid decisions and massive investment if it wants to keep pace economically with rivals [sic] the United States and China". [8] The report was expected to affect transatlantic ties in the years to come. [9]

EU budget

The report supports joint borrowing, something von der Leyen and various member states immediately rejected. [10] [11] [12]

Energy sector

The Draghi report makes the energy sector a top priority. [13] Updates and extensions of the European power grid are necessary. [14] [15]

The report's stress on the necessity to develop cross border electricity management (Capacity Allocation and Congestion Management) by power exchanges and transmission system operators was confirmed by the 2025 Iberian Peninsula blackout. [14]

Reactions

The report had been eagerly awaited by some, [16] and initial reactions from think-tankers were mixed, [17] while The Economist compared the plan's scope to the 1948 Marshall Plan. [18] A report out of Chatham House opined that "Stark recommendations in the Draghi report risk being thwarted by a European leadership vacuum – and a lacking sense of urgency." [6]

Critics pointed to a lack of representation of the stakeholders consulted in the creation of the report. Central and Eastern Europe as well as the civil society and trade unions were underrepresented, causing it to focus too much on core European countries and on business interests, and addressing social and ecological challenges with fewer points of view only. [19]

French economist Thomas Piketty welcomed the Draghi report as "going in the right direction" and "having the immense merit of overturning the dogma of fiscal austerity". [20]

Italian economist Lucrezia Reichlin wrote: "According to Draghi, the challenges Europe is facing are nothing short of existential." [21]

See also

Letta Report (2024)

References

  1. ↑ "Enrico Letta's Report on the Future of the Single Market – European Commission". single-market-economy.ec.europa.eu.
  2. ↑ "Letta/Draghi reports series". European Law Blog. Retrieved 30 May 2025.
  3. ↑ Dupichot, Philippe (28 May 2024). "The Letta Report: the case for a European Code of Business Law Gide". Gide. Retrieved 30 May 2025.
  4. ↑ O’Donohoe, Ciarán (12 December 2024). "Strengthening the Single Market: An Overview of the Enrico Letta Report | IIEA". www.iiea.com. Retrieved 30 May 2025; "The report addresses the strengths and weaknesses of the EU and its Single Market and sets out a series of measures aimed at improving the economic resilience of the bloc."{{cite web}}: CS1 maint: postscript (link)
  5. ↑ "Five questions (and expert answers) about Draghi's new report on European competitiveness". Atlantic Council. 10 September 2024. Retrieved 12 September 2024.
  6. 1 2 "Mario Draghi's competitiveness report sets a political test for the EU". Chatham House – International Affairs Think Tank. 9 September 2024.
  7. ↑ "Europe's Draghi report unleashed: These are the 5 things to watch". POLITICO. 9 September 2024. Retrieved 12 September 2024.
  8. ↑ "Draghi urges EU to catch up rivals or face 'slow agony'". Reuters.
  9. ↑ "How the Draghi report could affect future EU-US relations – Euractiv". 9 September 2024.
  10. ↑ "Q+A: No, Draghi does not want €800b in EU debt". The Parliament Magazine. 11 September 2024. Retrieved 12 September 2024.
  11. ↑ Carretta, David; Spillmann, Christian (10 September 2024). "Ursula von der Leyen utilisera Draghi "à la carte"". La Matinale Européenne. Retrieved 12 September 2024.
  12. ↑ "Germany's Lindner rejects Draghi's common borrowing proposal". POLITICO. 9 September 2024. Retrieved 12 September 2024.
  13. ↑ Zachmann, Georg (5 May 2025). "Draghi's pitch to improve the competitiveness of energy-intensive industry". Bruegel | The Brussels-based economic think tank. Retrieved 30 May 2025.
  14. 1 2 Fokus Europa (in German). Retrieved 30 May 2025– via on.orf.at.
  15. ↑ Westphal, Kirsten; Pastukhova, Maria; Pepe, Jacopo Maria. "Geopolitics of Electricity: Grids, Space and (political) Power". Stiftung Wissenschaft und Politik (in German). Retrieved 30 May 2025.
  16. ↑ "Europe's Draghi report unleashed: These are the 5 things to watch". POLITICO. 9 September 2024.
  17. ↑ "The Draghi EU competitiveness report – the reactions". euronews. 11 September 2024.
  18. ↑ "Mario Draghi outlines his plan to make Europe more competitive". The Economist.
  19. ↑ "Critics slam Mario Draghi's landmark EU competitiveness report as 'one-sided'". euronews. 20 September 2024.
  20. ↑ "Thomas Piketty : « Le rapport Draghi a l'immense mérite de tordre le cou au dogme de l'austérité budgétaire »" (in French). Le Monde. 14 September 2024. Retrieved 16 September 2024.
  21. ↑ Reichlin, Lucrezia (28 September 2024). "Will the EU heed Draghi's call for integration?". Gulf Times. Retrieved 11 June 2025.


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