Issue Critiques of the Draghi diagnosis: overstated gains and neglected regional divergence

Summary

The Draghi report quickly became a reference point for EU policy debate, but it has also drawn qualified criticism. Blanchard and Ubide (2024) welcome its comprehensive agenda yet argue that the claim that the transatlantic growth gap stems mainly from productivity, and the expected growth boost from innovation, the green transition and market integration, may be overstated. They point out that the green transition raises production costs in the short run, so its long-run technological benefits must be separated from transition burdens. They also question whether capital market integration or joint debt alone can meet large investment needs when European savings are not flowing into risky innovation, and they flag fiscal sustainability risks from common borrowing. McCann and Stierna (2026) add that the report underplays how regional convergence in Europe has turned into widening disparities, and that discontent and political alienation in lagging regions could constrain the implementation of EU-level policy.