Issue Draghi's warning of an existential competitiveness challenge and three priority tasks

Summary

The Draghi report, prepared at the request of the European Commission and published in two parts in 2024, frames stagnant productivity as an existential challenge for the EU. Without faster productivity growth, it warns, the Union cannot at the same time lead in new technologies, meet its climate goals, secure strategic autonomy and finance its social model. It sets three tasks: closing the innovation gap with the United States and China, pursuing decarbonisation together with competitiveness, and strengthening security while reducing supply-chain dependencies. On innovation, the report's point is not a lack of inventive capacity but a broken link between Europe's strengths in education, health and welfare and industrial competitiveness, most visible in digital technology. Decarbonisation can cut energy costs and build clean-tech leadership if policies are coordinated, but relying on cheaper Chinese clean technology risks eroding Europe's own electric-vehicle and clean-tech industries.