Draghi’s report on EU competitiveness receives mixed reception in the European Parliament

This article was originally published in English

Mario Draghi appears to have impressed leading MEPs with his plans to boost the EU’s sluggish economic growth, but not everyone is convinced.

Draghi, former president of the European Central Bank and former prime minister of Italy, will probably publish his European competitiveness report next week, possibly on Mondaybut yesterday (4 September) informed MEPs of its findings.

Manfred Weber, leader of the European People’s Party (EPP), told reporters after the meeting: “The big message that Competitiveness is the number one issue…as a European business party, we welcome this with great satisfaction.”

“The last five years have been the years of the ‘Green Deal’… based on this report, we are opening the next chapter,” he added.

Weber, who represents the largest political party in the European Parliament, cited the Need for Airbus-style flagship European projectsand the need to ensure that environmental technologies such as heat pumps and electric cars are produced in Europe and not the United States or China.

Draghi’s report, originally due in June, was requested last year by Commission President Ursula von der Leyen, also of the EPP, and follows on the heels of another report by former Italian Prime Minister Enrico Letta.

In April, Letta said he had sounded a “big red alarm” over the growing economic gap with the United States, and called for reform of the rules of the energy marketthe telecommunications and the financial services.

Cautious welcome

Draghi’s conclusions – said to include specific recommendations for ten key economic sectors, perhaps along similar lines to Letta’s – received a more cautious reception from others in parliament.

“What I like is that clearly defends European values“such as public services and climate change,” said Bas Eickhout, co-leader of the Greens group in the European Parliament. “It is sounding the alarm very clearly.”

“You won’t see anything in the report that mentions labour costs, because he has said that is not the issue,” Eickhout added, attempting to respond to criticism that the report will be used to justify wage cuts for workers.

Instead, the report will examine Europe’s “complacency” in the face of high energy costs and the Low productivity in important high-tech sectorshe added.

Support from left-wing MEPs is rather more nuanced. In a statement, Socialist group leader Iratxe García said that any economic revival must be “built on quality jobs and affordable energy”, including a “Green and European Procurement Act”.

Others, such as Manon Aubry of the Left group in the European Parliament, were not impressed by either Draghi’s conclusions or his frankness.

“It was a lip service presentation that didn’t say much,” Aubry told reporters after the meeting, adding that MEPs had been “left in the dark”.

“I would like us to talk about competitiveness, but then we would have to question the European trade policy that has sold out our industry.… there is at least a hypocrisy, if not a fundamental contradiction,” he said.

“What is the democratic legitimacy of Mario Draghi to draft such a report… was he chosen by you, or by anyone else?” Aubry asked.