Draghi calls for \u20ac800bn EU investment boost and new industrial strategy<\/h2>\n<\/header>\n
Over in Brussels, Mario Draghi is calling for coordinated industrial policy and a huge increase in investment to improve the economic situation in the European Union and lift competitiveness.<\/strong><\/p>\n Draghi<\/strong>, the former European Central Bank chief and Italian prime minister, is presenting a new report on the future of EU competitiveness, which he has been working on for the last year.<\/p>\n In it, he calls for a much more coordinated industrial policy, more rapid decisions and massive investment to stop Europe falling further behind the US and China.<\/p>\n Draghi<\/strong> says that Europe needs to boost its investment by up to five percentage points of GDP \u2013 or up to \u20ac800bn a year – and much closer coordination between European countries to ensure the money is spent effectively.<\/p>\n Draghi says his report proposes a \u201cnew industrial strategy for Europe\u201d, and is granular with 170 different topline proposals.<\/p>\n Speaking in Brussels now, Draghi<\/strong> warns that Europe\u2019s productivity is \u201cweak, very weak\u201d, and point out that growth has been slowing down for a long time.<\/p>\n World trade is slowing, and become less open to European countries, Draghi<\/strong> says, adding that Europe has also lost its main supplier of cheap energy, Russia. Also, it needs to invest more in defence, for the first time since second world war.<\/p>\n Another hurdle, Draghi<\/strong> adds, is that this is the first year that Europe cannot count on population growth to lift growth.<\/p>\n Draghi\u2019s<\/strong> report is likely to influence the debate on EU competitiveness, one of the priorities of the next European Commission, which is due to take office later this year.<\/p>\n Introducing Draghi, EC president Ursula von der Leyen<\/strong> said there is a \u201cwide consensus\u201d that the issue of improving Europe\u2019s competitiveness must be \u201cat the top of our agenda and at the heart of our action\u201d.<\/p>\n