Reforming the European Union's economy has become even more urgent after Donald Trump's victory in the US. The author of the sensational report, Marid Draghi, warned of this as he arrived for EU leaders' talks in Budapest, AFP reports.
In the report, published in September, the former European Central Bank president warned Europe was failing to keep up with the US. He pointed to low productivity and the slowdown of the EU economy as a problem.
"The recommendations in the report are now urgent, given the economic situation we are in now. They have become even more urgent after the US elections. The sense of urgency is greater today than it was a week ago," Draghi said.
Commissioned last year, the report was written to guide the EU executive under Ursula von der Leyen. She won a new five-year term in July.
Draghi spoke to the media ahead of the talks, which are expected to be dominated by his report. In it, the former Italian prime minister calls on the EU to invest up to €800 billion a year to reach the US.
Calling for productivity-boosting investment in Europe, Draghi said a future Trump administration would likely give the U.S. tech sector an extra boost. This is a key economic area where Europe is lagging.
The new US government is likely to protect traditional industries where the EU exports "the most to the United States", he said.
"There we must negotiate with our American ally with a united spirit to protect our European producers. There is no doubt that Trump's presidency will bring about a big change in the relationship between the US and Europe. Not necessarily all in a negative sense, but we certainly have to take that into account," Draghi noted.
Senior EU officials also stressed that Europe must urgently address its slowing growth.
"Competitiveness is not just a buzzword, it means we have to focus on economic growth," said European Parliament President Roberta Mezzola.
The Draghi report represents an "excellent basis" for reforms, European Council President Charles Michel said. "Everything is on the table," he added, especially financing. | BGNES
