EU needs to invest $884B more to boost economy, says report

The European Union needs to boost investment by as much as $884 billion a year to address its growing economic crisis, which includes slow growth and competition, a decline in living standards, and high energy prices.

In a much-awaited report presented yesterday, former Italian Prime Minister and European Central Bank President Mario Draghi pointed out that the EU lags behind the US and China in economic competitiveness. He also warned about the bloc’s dependence on Beijing for critical minerals, which could impact manufacturing.

Draghi recommends that Europe invest twice as much as it did when recovering from World War II. He calls for major investments in the tech, telecoms, defense, and green energy sectors.

He advocates relaxed competition rules to allow mergers and help European companies scale up globally. He calls for AI technology to be integrated into all existing industries.

The report also proposes shifting the European Securities and Markets Authority into a central regulatory body, similar to America’s Securities and Exchange Commission (SEC).

Draghi’s report reflects an urgent call for action as the EU faces economic stagnation and increasing pressure from global competitors.

However, achieving these reforms will require significant political will and cooperation from all 27 EU member states.