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]

Draghi Observatory

In September 2025, one year after the publication of the Draghi report, the European Policy Innovation Council (EPIC), a Brussels-based think tank, launched the Draghi Observatory & Implementation Index to monitor how far the European Union had delivered on the report’s recommendations. [22]

The Observatory’s first audit found that out of 383 recommendations, only 43 (11.2%) had been fully implemented, with 77 (20.1%) partially implemented, 176 (46.0%) still in progress, and 87 (22.7%) untouched.2 The results suggested that, even counting partial progress, the EU had achieved only about one-third of Draghi’s agenda in the first year. [23] [24]

EPIC’s analysis showed uneven progress across sectors. Transport (26.8% implemented) and critical raw materials (33.3%) were the most advanced, while areas such as clean technologies, digitalisation, and energy saw little or no full implementation. [25] According to Antonios Nestoras, EPIC’s executive director, the findings underscored Europe’s lagging position in future technologies, arguing that “instead of backing our remaining ‘Made in Europe’ excellence, we keep churning out world-class bureaucratic cages and regulatory mazes.” [26]

The initiative was described as the first systematic accountability tool of its kind at EU level, modelled on instruments such as Canada’s Polimeter and the U.S. PolitiFact Truth-O-Meter. It evaluates progress on each recommendation as if it were a political pledge, relying on a panel of more than 120 experts to ensure geographical and sectoral balance.

Conference: One Year After the Draghi Report

The September 2025 Conference saw Draghi himself pessimistic: Every challenge he had pointed out in his report had worsened. [27] Von der Leyen stressed the EU's Competitiveness [28] Compass and Agenda [29] saying that "Every single Member State has endorsed the Draghi report. And so has the European Parliament." [30] She regretted IMF analysis results of "internal barriers" within the Single Market, "equivalent to a 45% tariff on goods and a 110% tariff on services". [30] The Commission is looking towards 2028 for completion [31] of the single market. [32]

Job and market share loss to non-market economies will have to be reduced, von der Leyen insisted. [30] Meanwhile Draghi had called for a pause on European AI rules to assess potential drawbacks. [33] The AI Act, fully applicable in 2027, being “a source of uncertainty”, Draghi once again promoted "common debt for common projects”. [33]

See also

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. Blenkinsop, Philip (9 September 2024). "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.
  22. "One Year After the Draghi Report: Europe Delivers Only 1 in 10 Promises". www.euinsider.eu. Retrieved 16 September 2025.
  23. "Draghi had a plan to save Europe's economy. We've rated it, a year in". POLITICO. 8 September 2025. Retrieved 16 September 2025.
  24. "Client Challenge". www.ft.com. Retrieved 16 September 2025.
  25. "One Year After the Draghi Report: Europe Delivers Only 1 in 10 Promises". www.euinsider.eu. Retrieved 16 September 2025.
  26. Cantarini, Simone (3 September 2025). "Nestoras (EPIC) slams EU delays on the Draghi agenda: "We keep churning out bureaucratic cages"". euractiv.it. Retrieved 16 September 2025.
  27. Royer, Yuka (16 September 2025). "Business - Mario Draghi warns Europe is falling further behind US, China due to government complacency". France 24. Retrieved 17 September 2025.
  28. "Europe's corporate leaders gear up to meet Europe's Competitiveness challenge: harnessing security and the Single Market". European Round Table for Industry ERT. 19 May 2025. Retrieved 17 September 2025.
  29. "An EU Compass to regain competitiveness and secure sustainable prosperity". European Commission - European Commission. Retrieved 19 September 2025.
  30. 1 2 3 von der Leyen, Ursula (16 September 2025). "Opening keynote speech by President von der Leyen at the 'One Year After the Draghi Report\' Conference". European Commission - European Commission. Retrieved 17 September 2025.
  31. "Single Market Completion". ERT. Retrieved 17 September 2025.
  32. Mustafayeva, Kamala (16 September 2025). "Von der Leyen: EU launching roadmap to create single market by 2028". Report.az Global Media Group . Retrieved 17 September 2025.
  33. 1 2 Genovese, Vincenzo; Kroet, Cynthia (16 September 2025). "Draghi calls for pause to AI Act to gauge risks". euronews . Retrieved 17 September 2025.