Official EU budget allocation reports and sector investment announcements

Mario Draghi's 328-Page Report Urges €750 Billion Investments to Address EU Competitiveness Challenges

Sep 9, 2024, 01:21 PM

Former European Central Bank President Mario Draghi has released a comprehensive 328-page report addressing the European Union's economic challenges and competitiveness. The report highlights the need for Europe to accelerate innovation, reduce high energy prices while continuing to decarbonize, and transition to a circular economy. Draghi emphasizes the necessity of fostering mergers in the telecommunications sector and stresses the importance of considering security issues in defense mergers. The report also warns against the high concentration of players in the European power and natural gas markets and the lack of regulation of non-financial traders of energy derivatives. Draghi's report calls for unprecedented investment, estimating that between €750 billion and €800 billion is needed annually to boost social equality and meet climate targets. Additionally, the report notes that no EU company with a market capitalization over €100 billion has been established from scratch in the last fifty years, contrasting with the creation of several trillion-dollar companies in the US during the same period. The report also highlights that Europe spends €270 billion less on research and innovation compared to the US. The German Finance Minister supports Draghi's growth focus but opposes joint EU borrowing.