The EU faces a new debate to analyze formulas to strengthen its competitiveness and cope with the subsidies that the United States and China have granted to its industry. Former Italian Prime Minister Mario Draghi, responsible for the report which lays the foundations of a Europe more competitive prints an urgent message with the victory of Republican Donald Trump in the American elections.
“The recommendations in this report are already urgent given the economic situation we find ourselves in,” said the former president of the European Central Bank at the informal summit of EU leaders taking place this Friday in Budapest. “These questions have become even more urgent after the US elections. “There is no doubt that Trump’s presidency will make a big difference in relations between the United States and Europe,” he added.
The Italian confirms that the EU must mobilize to reactivate its industrial competitiveness against the United States, because the difference in productivity between the two regions is very large. “Big changes are coming and I think What Europe cannot do is postpone decisions“, affirmed Draghi, demonstrating the lethargy of the community bloc in favor of a consensus which has not been reached.
“Trump will give a boost to innovative sectors and protect traditional industries, which are precisely those where we export the most to the United States. We will have to negotiate with the Americans in a united spirit, so that European producers are also protected”, added the former Italian Prime Minister.
In accordance with what he sets out in his report, the former president of the ECB was in favor of a new joint issue of debt within the EU: “We say yes, that it is essential, but it’s not the first thing,” he said. declared to the press when questioned on this question. Given the lack of consensus on such a decision among member states, Draghi showed that “there are many other decisions that can be taken without immediately addressing the issue.” the question of common public financing”although it considers this necessary for joint projects such as electrical interconnections.
