The report, “The Future of European Competitiveness” (September 2024), authored by Mario Draghi and commissioned by the European Commission, delivers a comprehensive strategy for revitalising Europe’s economic performance. It identifies the widening gap between the EU and the US in terms of productivity and income growth, and warns of the existential risk posed by stagnation in innovation, energy transition, and geopolitical security.

The report sets out three transformative pillars to reignite sustainable growth: (1) closing the innovation gap, especially in advanced technologies where Europe lags behind the US and China; (2) launching a coherent, continent-wide plan that aligns decarbonisation with competitiveness to avoid undermining industrial strength; and (3) strengthening Europe’s strategic autonomy by reducing critical dependencies and enhancing defence capabilities.

It stresses that the EU must reform governance, fully realise the potential of the Single Market, and coordinate policies and funding to meet investment needs on a scale not seen since the post-war Marshall Plan. A renewed industrial strategy, rooted in economic resilience and social cohesion, is proposed as the foundation for a productive, sovereign, and sustainable Europe.