Invest, Reform or Lose it All

I just read Mario Draghi's Report, and here's what it proposes for Europe.

Having already read an earlier draft of Mario Draghi’s report, I was prepared for strong words. But now that the full document is out, let me tell you: the urgency in Draghi’s message is unmistakable, and it couldn’t come at a more critical time. His call to action isn’t just for policymakers in Brussels—it’s for every one of us who believes in the promise of a united Europe, able to be a global player.

Draghi’s report makes one thing clear: we can no longer pretend that we can have our pie and eat it too—that we can sustain our welfare systems, lead the world in environmental protection, and safeguard our freedoms without massive investments and reforms. We cannot. This is a fight for survival.

Here's what I take away from it:

Joint Borrowing

Draghi calls for €800 billion in additional annual investments to save Europe from falling behind the U.S. and China, through joint borrowing. I’ve long supported that joint borrowing is the most effective way to finance this level of investment, and much needed.

This is the solution he sees to maintaining our social model, driving innovation, and protecting our climate. As Draghi bluntly puts it, without this kind of action, we will be forced to make devastating choices. Do we sacrifice welfare, environmental leadership, or our freedom? We cannot maintain all three without decisive action.

Which leads us to the next big theme:

Europe’s Challenge

This report is a wake-up call. Draghi doesn’t sugarcoat it, and neither should we. Europe is facing an existential challenge—either we invest in ourselves now, or we fall behind. Without joint borrowing and massive public and private investment, we will lose our edge. We will lose the ability to set the global agenda. And most dangerously, we will lose our independence, as the rest of the world moves ahead without us.

No Welfare Without Action

Draghi’s report is a stark reminder: there can be no welfare without economic strength. Our social systems, which have been the pride of Europe for decades, are unsustainable without investment in innovation and productivity. If Europe doesn’t become more productive, we’ll have to scale back on our ambitions—and that will hurt every single one of us.

We cannot fund our social safety nets without the economic muscle to back them. Draghi’s report lays it bare: without joint borrowing, without doubling down on technology, and without massive investments in clean energy, there will be no environmental agenda and no welfare.

Time to Act

Europe’s future is not guaranteed. If we want to preserve the values we hold dear—our welfare, our environment, our freedoms—we need to act now. Draghi’s report is calling for a Europe that is able to continue leading.

We must invest. We must reform. Europe’s place as a global superpower is within reach—but only if we’re brave enough to fight for it.

Here are some key proposals from Draghi's report:

- Common EU debt issuance: The EU should regularly issue common debt to fund major initiatives, including defense needs. (Building on the Next Generation EU framework)

- Massive €800 billion per year investment push: Draghi calls for an unprecedented €800 billion per year in public and private investment to boost productivity, tackle decarbonization, and secure Europe's position in advanced technologies.

- Telecoms and Tech Mergers: Reform EU competition rules to encourage mergers in key sectors like telecoms and defense, to enable European companies to scale globally and compete with Chinese and American firms. This will definitely upset some people, even in Luxembourg, but the competition from China especially should be a warning sign to go ahead with it.

- Reduce reliance on China: Reduce Europe's dependence on Chinese imports, especially in critical raw materials, semiconductors, and digital tech.

- AI and Innovation / Commercialization: Close our innovation gap with the U.S. and China by translating our research into commercially viable products, particularly in AI and advanced industries. This might sound too Liberal to some folks across our continent, but I couldn't agree more.

- Industrial strategy overhaul: He proposes a coordinated industrial strategy to boost sectors like the car industry, where Europe is falling behind.

- Streamline EU decision-making: Draghi argues for reforms to speed up EU policymaking, reducing bureaucracy and national vetoes that slow down essential reforms, which are increasingly vital in a rapidly evolving global landscape.

This is a clear call, for a Liberal, prosperous Europe, one that must be able to reject nationalist and the far right, to preserve and protect our present and future.

Are our eyes open?