Draghi’s report on Europe’s declining competitiveness offers a comprehensive analysis, but many of its findings are not new. Yet, Draghi’s stature may lend urgency to these recommendations. 

Key Points

  • Mario Draghi’s report on Europe’s declining competitiveness poses a significant challenge for policymakers. While it has broad support, implementation will be hindered by fragmentation and a lack of political consensus.
  • A combination of low investment and low productivity has undermined Europe’s competitiveness. Companies are hesitant to invest due to weak expected growth, creating a vicious cycle that is stifling further economic progress.
  • Draghi advocates significant structural reforms -- including a rethink of regulation and more financial market integration -- and a more flexible governance framework within the EU that will not stifle progress in the adoption of new technologies.

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