Draghi Report – A New Hope for Europe?

This week, Economics for Policy hosted a debate on the Draghi Report, bringing together experts on how the European Union can address challenges around Innovation, Decarbonisation, and Security. Some brief highlights:

Francesco Franco started by observing that in a world where geopolitics trumps economics, some of the solutions identified in the report might first appear controversial. He also underlined that the report proposes an overhaul of Europe’s approach to skills to balance the disruption caused by adopting the proposed measures.

Ana Fontoura Gouveia highlighted the importance of scalable technologies like green hydrogen and renewables. She presented examples from different member-states and underlined the need for greater cooperation around a shared industrial policy, with a view towards increased coordination on sustainability objectives.

Security was another focal point: Madalena Meyer Resende analyzed Europe’s shifting defense strategy and the need for greater autonomy from long-standing transatlantic dependencies while emphasizing the EU’s strategy to create an “economic version” of NATO.

The second part of the event focused on the political and institutional feasibility of these proposals: José Tavares pointed toward the possibilities for the European Union from the shift to an innovation for defense agenda. This combines the rationality of public good provision with the political support stemming from the proximity of war in Ukraine.

Last but not least, António Vicente underscored the report’s timing, communication, and pragmatism, sharing his optimistic perspective on the need for a strong political will to carry out the ambitious reforms. He recalled previous EU reports that paved the way for successful reforms and argued that the Draghi report may play a similar role.

After the two panels, a lively debate was held with the participation of many attendees, especially regarding the challenges of joint EU borrowing, fiscal sovereignty, and the prospect of a capital markets union. We thank all, in particular our panel speakers, for a great event.