Daniel ViañaBrussels correspondent
Updated
The Draghi Report: A Year of Stagnation and Unfulfilled Promises
A year after the presentation of the Draghi report , the reality is that Europe is in a more difficult situation than it was a year ago. This assertion was made by Mario Draghi, the former Vice President of the European Central Bank (ECB) , during a recent event in Brussels commemorating the first twelve months of the report’s implementation. However, the event lacked a celebratory tone, not only due to Draghi’s somber diagnosis but also because the reform plan associated with the report continues to show a significantly low execution rate.
According to a recent analysis by the European Policy Innovation Council (Epic) , only 11.2% of the 383 recommendations outlined in the report have been fully implemented. When considering partial advancements, the EU has achieved a mere 31.4% of the proposed agenda. A staggering two-thirds of the Draghi competitiveness agenda remains unfinished, highlighting a concerning trend of inefficiency and stagnation in EU governance.
Nearly 90% of the reforms suggested by Draghi a year ago are still pending. The data is particularly troubling, as it reveals that 20% of the recommendations have seen partial application, while 46% are currently in progress. Moreover, over 20% have not yet been addressed at all. This exasperating slowness , typical of EU bureaucracy, is something Draghi explicitly criticized during the event, calling attention to the growing dissatisfaction among citizens and businesses.
People are expressing increasing frustration, feeling disheartened by the EU’s sluggish response to pressing challenges. Draghi noted, “They see us unable to match the speed of change in other areas. They are prepared to act but worry that governments don’t grasp the seriousness of this moment.” This observation resonates deeply, as it reflects a crisis of confidence among stakeholders in the EU.
Common excuses for this slowness often cite the complexities of the EU’s structure , including the involvement of multiple actors. However, Draghi labeled this as complacency , insisting that simply adhering to established processes is no longer sufficient. He emphasized that competitors such as the United States and China can act faster, even while operating within their own legal frameworks. To remain competitive, the EU cannot afford to continue on its current path. A new strategy is essential—one that requires a new pace, scale, and intensity in action. This translates into not only working collaboratively but also concentrating resources in areas where they will have the most impact and delivering results in a matter of months rather than years.
Moreover, the report indicates a drastic increase in annual investment needs for Europe, which have surged by 50% within a year. Draghi stated that the ECB now estimates the annual investment requirements for 2025-31 at nearly 1.2 trillion euros , up from 800 billion euros just a year prior. This dramatic rise, he noted, is significantly influenced by new commitments in the realm of defense .
Adding to the urgency, Draghi highlighted the constrained fiscal margins that the EU is currently facing. Even without these increased expenditures, public debt is projected to rise by 10 percentage points over the next decade, potentially reaching a concerning 93% of GDP in the most optimistic scenarios. It raises alarm bells about the sustainability of current policies and funding sources.
In conclusion, Draghi’s reflections serve as a clarion call for the EU to reassess its priorities and strategies. The current growth model appears to be fading, and vulnerabilities are escalating. The lack of a clear pathway to finance critical investments further complicates the matter. Ultimately, continued inaction not only jeopardizes Europe’s competitiveness but also threatens its sovereignty .