Draghi: 'With tariffs we are at breaking point. On Ukraine, Europe a bystander at peace talks'.
Former PM: 'Common EU debt key to defence investment. Energy prices are a threat to industrial survival'
2' min read
Key points
2' min read
From tariffs to EU defence to the peace negotiations in Ukraine: former Prime Minister Mario Draghi sends (as usual) strong messages to Europe. Speaking at the Cotec in Coimbra - together with President Mattarella - he spurs Europe to act on the competitiveness front and addresses in sometimes harsh tones all the issues facing the EU.
With duties we are at breaking point
.Changes have been ongoing for 'several years and the situation was deteriorating even before the recent tariff hike. Thus, internal political fragmentations and weak growth made an effective European response more difficult. But the most recent events represent a breaking point. The massive use of unilateral action to resolve trade disputes and the ultimate disenfranchisement of the WTO have undermined the multilateral order in a way that is difficult to reverse'. This was said by former Prime Minister Mario Draghi speaking at the Cotec summit in Coimbra.
Bad to believe in return to normality, EU will have to produce by itself
"In the longer term, it is a gamble to believe that trade with the United States will return to normal after such a serious unilateral break in relations or that new markets will grow fast enough to fill the void left by the United States," continued Mario Draghi, speaking at the 18th Cotec Europe Innovation Summit 'A Call to Action' underway in Coimbra. 'If Europe really wants to be less dependent on US growth, it will have to produce it itself'. The former ECB president recalled the "profound changes in trade and international relations" and added that "these changes have been taking place for several years and the situation was deteriorating even before the recent tariff upheavals. Until now, internal political fragmentation and slow growth have hindered an effective European response. But recent events,' he added, 'represent a breaking point. The extensive recourse to unilateral action to resolve trade disputes and the definitive withdrawal of the WTO have undermined the multilateral order in a way that is difficult to reverse'.
Common EU debt key to investment in defence
"The EU has reformed its fiscal rules and activated the 'escape clause' to facilitate increased defence spending. But so far, only five of the 17 eurozone countries - representing about 50 per cent of GDP - have opted for an extended adjustment period. When debt is already high, exempting categories of public expenditure from budgetary rules can only go so far. In this context, common EU debt issuance to finance common spending is a key component of the roadmap,' Draghi said.
Energy prices threaten industry survival
.'High energy prices and grid failures are, first and foremost, a threat to the survival of our industry, a major obstacle to our competitiveness and an unsustainable burden on our households and, if not addressed, represent the main threat to our decarbonisation strategy,' argued former Prime Minister Mario Draghi.
