Draghi: We are losing our technological edge, energy is too expensive – the EU must act

The European Union faces a serious loss of competitiveness and economic growth, warned former European Central Bank president and former Italian prime minister Mario Draghi.

In a speech to EU leaders, including Ursula von der Leyen, in Brussels, he stressed that the Union is falling behind global rivals such as the US and China and that member state governments do not recognize the gravity of the situation.

“Continuing as before means accepting the gap,” he said.

Draghi pointed out that although the Union has ambitious plans, their implementation is slow and uncoordinated.

He cited artificial intelligence as an example: while the US developed 40 large basic models last year and China 15, the EU produced only three.

He also criticized high energy prices, which he said were slowing technological development—gas in Europe is four times more expensive than in the US, for example.

At the same time, he warned of a lack of plans to finance necessary investments. He sees the solution in far-reaching structural reforms that would mobilize private capital and reduce dependence on public funds.

“The rest of the world has already broken its taboos. Europe must act,” Draghi concluded.

(reuters, red)