Former European Central Bank chief and Italian Prime Minister Mario Draghi presented the long-awaited report “The Future of European Competitiveness” in the European Parliament. In it, the Italian economist and politician called on the European Union to lower its ambitions and set realistic goals. For example, Draghi proposed using, rather than banning, cheap Chinese solar panels so that foreign taxpayers would pay for Europe’s cheapest energy transition option.
“If Europe cannot become more productive, we will have to choose. We will not be able to immediately become a leader in new technologies, a foundation for climate responsibility and an independent player on the world stage. We will not be able to finance our social model. We must curb some, if not all, of our ambitions.” – says the report by the former head of the European Central Bank. It proposes fundamental reforms to enable the EU to achieve its goals of becoming a true single market.
During a speech in the European Parliament, for example, mario draghi He proposed to stop clashing with China over cheap green energy equipment and to pursue a reasonable strategy.
“Europe is a world leader in clean energy in areas such as wind turbines, electrolysers and low-carbon fuels. Europe also accounts for one-fifth of green energy technologies. But this does not mean that we can seize all the opportunities. Chinese competitors are becoming strong due to a combination of factors: government subsidies, innovation and volume. By 2030 at the latest, China’s solar panel production capacity will be twice the global demand, and battery production capacity will be equal to it.” – Mario Draghi told parliamentarians.
He believes that Europe will be faced with the need to reach an agreement.
“Growing dependence on China offers the cheapest option for the EU to achieve its climate goals. However, subsidies in China pose a threat to our industry and the creation of sufficient jobs in green energy. Unable to solve this problem, we make black and white decisions. The report suggests a different approach depending on trends and technologies,” said the former head of the European Central Bank.
“There are solar panels where foreign manufacturers are way ahead of European ones, and trying to organise production in Europe will only delay decarbonisation. Even if these countries use subsidies, we should allow foreign taxpayers to finance cheaper green energy equipment in Europe.” – continued Mario Draghi.
As reported EADaily The European Commission was previously concerned about the expansion of Chinese companies in Europe with cheaper equipment for green energy, batteries and electric vehicles. Brussels proposes introducing protective duties for establishing or re-establishing their own production.
At the same time, the Federation of German Industry (BDI) estimates that the fight against high energy prices and the restoration of the competitiveness of German industry by 2030 will require 460 billion euros by 2030.
Mario Draghi writes that at the heart of Europe’s economic problems is the cost of energy for industry, which is currently forced to pay 158% more for electricity and 345% more for natural gas than in the United States.
“We must abandon the illusion that only delay can preserve consensus,” writes Mario Draghi. “Delay only led to slower growth and certainly did not lead to consensus. We have reached a point where, if we do not act, we will have to put our well-being, our environment or our freedom at risk.”
