Eurozone economy and finance ministers are meeting in Luxembourg on Monday to discuss formulas to boost the EU’s competitiveness at a time of growing rivalry with the United States and China. The conversation will take as a starting point the recently published Draghi report which, with its 800 billion annual euros on the table, will allow economic leaders to begin to develop a road map and address issues as sensitive as a new joint debt issue, similar to that of the recovery plan after the pandemic.
The conversation will focus on the budgetary and macroeconomic implications of the proposal prepared by former Italian Prime Minister Mario Draghi. The goal is to start outline a series of conclusions on a debate that the EU has been addressing for years, at a time when the United States and China have provided their respective industries with subsidies and support to boost their production capacity.
The idea is that the Eurogroup will try this Monday to obtain a complete vision of the implications for European competitiveness in the years to come. This involves studying what tools could be applied to the community space and determining, at the same time, What implications would they have for national budgets? and for the growth of countries.
The meeting should conclude with a joint declaration, quite generic, as diplomatic sources explained. A text which, after all, establishes what They will be the main pillars to stimulate competitiveness of the block. It will not be a text which will go into more detail about the community competitiveness strategy for the next legislative cycle, even if it lays the foundations for this purpose.
The idea is that the conversation between economy ministers closes a discussion that began a year ago and which includes the report prepared by another former Italian prime minister, Enrico Letta. Fill the investment gap compared to other markets, mainly the United States, prevent companies from fleeing, mobilize private investment and public goods at community level are the main objectives of the EU.
One of the points mentioned by Draghi in his report is a new joint debt issue that will finance the investments needed to strengthen the bloc’s competitiveness. Even if on this point Spain would be in favor of a new issue of Eurobonds and the creation of a second part of the Recovery Plan, an idea that France also supports; would face outright rejection on the part of the thriftersled by Germany and the Netherlands, reject more common resources.
On the other hand, what Letta proposed in April in her report, among a long list of ideas, was to move from a capital markets union to a savings and investment union. The dormant European project has found its Achilles heel in the political blockade. The Savings and Investment Union proposed by the Italy calls for creating an investment market this allows you to take advantage of the huge savings that Europeans accumulate in their accounts.
Even if this project does not materialize, the euro zone economy ministers will once again address, capital markets union. A debate for which the texts of declarations are only expected in November.
The President of the European Investment Bank will participate in the conversation, Nadia Calviño, who will explain the capacity of the institution facilitate access to financing for small businesses. It will also examine the relevant role of the bank in helping businesses grow and supporting SMEs to access capital markets.
