Draghi Urges EU to Accelerate Economic Reforms Amid Global Competition

BRUSSELS—Former European Central Bank President Mario Draghi has issued a stark warning about the European Union's economic competitiveness, emphasizing the need for swift and comprehensive reforms to maintain the bloc's global standing.

Speaking at a high-level conference in Brussels on September 16, 2025, Draghi expressed concern over the EU's sluggish implementation of reforms designed to bolster its global position, particularly in comparison to economic rivals like the United States and China. He noted that only 11.2% of his 383 recommendations, presented a year earlier, had been enacted, attributing this inertia to political disagreements and bureaucratic delays.

"The cost of delay is simply too high," Draghi stated, emphasizing that Europe's reliance on an outdated growth model and its increasing economic vulnerabilities pose significant threats to its global competitiveness and sovereignty. He urged for a departure from traditional approaches, advocating for a faster, larger-scale, and unified effort to promote investment and reform. Draghi stressed the importance of encouraging private capital as essential to the EU’s future competitiveness.

Draghi's remarks come one year after he unveiled a comprehensive report on the future of European competitiveness, which featured more than 170 recommendations aimed at reigniting Europe’s economy. The report called for an "unprecedented" boost to public investment, including through the issuance of new EU common debt, a reform of the EU’s cohesion policy, an overhaul of competition policy, and a new industrial policy with at its core a strategy for reducing Europe’s high energy prices.

The former Italian Prime Minister and ECB President highlighted the EU's failure to implement the majority of his recommendations, with only 11.2% enacted. He attributed this lack of progress to political disputes and bureaucratic inertia within the EU's institutions. Draghi emphasized that Europe's reliance on an outdated growth model and its increasing economic vulnerabilities pose significant threats to its global competitiveness and sovereignty. He urged for a departure from traditional approaches, advocating for a faster, larger-scale, and unified effort to promote investment and reform. Draghi stressed the importance of encouraging private capital as essential to the EU’s future competitiveness.

Draghi's warnings underscore the potential social and economic consequences of the EU's stagnation in implementing necessary reforms. Without addressing these issues, the EU risks falling behind in the global economic hierarchy, which could lead to reduced influence in international affairs, diminished economic growth, and lower standards of living for its citizens. The call for increased private investment and structural reforms suggests a need for policy shifts that could impact various sectors, including labor markets, education, and technological innovation.

The EU has faced challenges in maintaining economic competitiveness in the past, particularly during the Eurozone crisis of the early 2010s. During that period, structural weaknesses and lack of coordinated fiscal policies were exposed, leading to significant economic turmoil. Draghi's current warnings echo those earlier challenges, indicating that despite previous efforts, substantial vulnerabilities remain. The difference this time lies in the global context, with rapid advancements in technology and shifting geopolitical dynamics intensifying the need for swift and effective reforms.

Draghi's call to action serves as a critical juncture for the European Union, highlighting the bloc's sluggish implementation of essential economic reforms. This stagnation poses significant risks to the EU's global competitiveness, especially when juxtaposed with the rapid advancements of the United States and China. The newsworthiness of this story lies in its potential to catalyze a reevaluation of the EU's economic strategies and governance structures.

As the EU grapples with these challenges, the path forward will require coordinated action among member states, a willingness to embrace structural reforms, and a commitment to fostering an environment conducive to private investment. The decisions made in response to Draghi's warnings will likely shape the future trajectory of the European Union's economic landscape.