Mario Draghi Report Warns EU Competitiveness Decline

Former European Central Bank president Mario Draghi, commissioned by European Commission President Ursula von der Leyen, released a strategic report warning that the European Union faces a structural decline in competitiveness. The analysis cites stagnant productivity, insufficient investment in future technologies, high energy costs and a fragmented single market that still operates as a mosaic of 27 economies rather than a unified arena.

The report warns that without radical policy changes Europe could fall behind the United States and China, as research talent and innovations often migrate to markets with cheaper energy and deeper capital pools. It also highlights growing socio‑economic disparities across the EU, noting that rising inflation, energy crises and costly green‑transition measures are pushing many citizens, especially in Eastern and Southern member states, toward poverty and energy insecurity.