Mario Draghi has demanded a “new industrial strategy for Europe”, calling on the EU to raise investments by €800bn a year to fund radical and rapid reform to stop the union falling behind the US and China. As well as backing a wholesale overhaul of how the EU raises investment funding, including “new common funding and common assets”, the former Italian premier’s highly anticipated report commissioned by the EU calls for Brussels to drive forward a significant reorientation of economic policy.
“The private sector is unlikely to be able to finance the lion’s share of this investment without public sector support,” Draghi wrote, adding that “some joint funding for investment in key European public goods, such as breakthrough innovation, will be necessary”.
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