During this September 2024, Mario Draghi, the former President of the European Central Bank and current high-profile economic advisor, presented a report entitled ‘The Future of European Competitiveness’. This document attracted the attention of economists, politicians and entrepreneurs across Europe, offering a detailed and forward-looking view of the challenges and opportunities the continent will face in the coming decades.

A Context of Change

Draghi’s report starts with an analysis of the current context, highlighting how Europe is at a crossroads. On the one hand, the continent has to deal with stagnating economic growth and the burden of high public debt in many member states. On the other, new opportunities are opening up thanks to technological developments, the green transition and the integration of global markets.

Competitiveness Challenges

Draghi identifies several key challenges for European competitiveness:

  • Innovation and technology: Europe needs to invest more in research and development in order not to fall behind the US and China. The report emphasises the importance of creating an innovation-friendly ecosystem, including both the public and private sectors.
  • Green transition: the transition to a sustainable economy is seen as an opportunity to create new jobs and stimulate growth. However, Draghi warns that this transition must be carefully managed to avoid social and regional inequalities.
  • Education and skills: the future of European competitiveness will depend on the ability to train a skilled workforce. Draghi proposes reforms in the education system to better align it with labour market needs, with an emphasis on digital and technical skills.
  • Single market and regulation: the report highlights the need to complete the single market and cut red tape that often hampers businesses. Draghi also suggests harmonising regulations across member states to facilitate trade and investment.

Opportunities for Europe

Despite the challenges, Draghi sees a promising future for Europe, provided the right actions are taken. He underlines the continent’s potential as a global leader in sustainability and technology, thanks to a unique combination of natural resources, human capital and advanced infrastructure.