Budapest

EU summit: Draghi, with Trump big difference in relations but not everything is bad

"There are big changes ahead and I believe that what Europe can no longer do is postpone decisions. As you have seen over all these years, many important decisions have been postponed because we were waiting for consensus. The consensus did not come, all that came was lower growth, lower growth, now stagnation,' said Mario Draghi

Mario Draghi. EPA/SZILARD KOSZTICSAK HUNGARY OUT

2' min read

2' min read

"The recommendations of the report on competitiveness are already urgent, given the economic situation we are in today. They have become even more urgent after the US elections. There is no doubt that the Trump presidency will make a big difference in the relations between the United States and Europe, but not necessarily all in a negative sense, certainly we should take note of that."

This was indicated to journalists by Mario Draghi, who will present his 'recipe' for the economic revival of the EU at the extraordinary meeting of the European Council.

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"There are big changes ahead and I believe that what Europe can no longer do is postpone decisions. As you have seen over all these years, many important decisions have been postponed because we were waiting for consensus. The consensus did not come, all that came was lower development, lower growth, now stagnation,' stressed Draghi: 'I hope that we will regain a united spirit'.

Mario Draghi reiterates the importance ofcommon financing between states to support the economic recovery, but emphasises that this is not the first issue on the agenda.

"It is indispensable but it is not the first thing. What the report says is that there are many other decisions that can be taken without immediately addressing the issue of common public financing. This is clearly necessary for some common projects, of common European interest, and there should be common financing for these projects. An example is interconnections in the field of energy'.

Draghi also referred to how it will be possible to increasespending on defence, he wondered how it will be possible to "spend 2 per cent of GDP on defence while respecting the stability pact".

For this 'a whole series of decisions will have to be taken, in this it is useless to say whether it is possible or not, today we have to decide what to do because this is the new situation'.

Draghi added that the Trump administration "will certainly give a big boost to the technology sector, a sector in which we are already far behind and which is the driver of productivity. Already now the difference in productivity between the US and Europe is very large, so we should in a sense take action, and much of the report's indications go just on this issue'.

Then he said that 'little is known about what exactly will happen, but one thing seems more certain than the others and that is that Trump will boost innovative sectors and protect traditional industries, which are precisely the industries where we export the most to the US. So we will have to negotiate with our American ally, in a united spirit, in a way that also protects European producers'.

Asked whether the EU is ready for a trade war with the US, Draghi reiterated: 'I just said that we have to negotiate with our American ally in a way that also protects our European producers'.

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