It’s a timely and good that aptly describes the problem of lack of competitiveness. This is the first reaction of Luxembourg MEPs to Mario Draghi’s report on the future of European competitiveness. It’s a report that calls for action, but there are differences of opinion, particularly on the crucial issue of financing.
(LSAP/S&D) welcomes a report that takes up “major demands from the S&D group, such as decarbonising the economy and putting in place a genuine green industrial strategy, and which takes account of the social dimension of competitiveness.” On this last point, he insists that growth must not just be economic. “It is also social and environmental,” he said, calling for the social dimension of this plan to be taken into account. “European competitiveness must be more inclusive than that of its competitors.”
Angel also welcomed a report that stresses that the solution to the European economy’s lack of competitiveness can only be found at European level. For the new quaestor of the European Parliament, this report should be read--and applied--in parallel with the one delivered a few months ago by , “an internal market that needs to be deepened, particularly in the areas of telecommunications and energy.”
He is now waiting to see what will be included in the European Commissioners’ “mission letters,” the action programme that Ursula von der Leyen is currently preparing.
An essential, relevant and timely report
For (DP/Renew), “this is an essential and relevant report, which has come at just the right time as the new Commission is being set up.” The MEP fully endorses a text for which he had “included most of the findings and measures to be taken in his election manifesto.” For Goerens, there is no room for hesitation: we need to invest massively in decarbonising the economy and in a European defence industry. “The difficulty will lie in finding the money,” he agrees. The Draghi report mentions three ways of doing this: increasing the contributions of member states, creating new resources or resorting to borrowing. In his view, all three routes will have to be taken. “The Americans and the Chinese have no qualms about borrowing. Europe will have to make a choice,” he says, recalling the precedent of borrowing €800bn to finance the post-covid recovery plan.
What does the future hold for this report? “It’s an exercise in political credibility that there will be a follow-up. No serious economist will contradict Mario Draghi on the findings,” Goerens says. He hopes that the European Parliament will keep up the pressure for results. “There has to be a real political will.”
A report that calls for action
(CSV/EPP) welcomes a report that has the merit of “pointing out observations that everyone has been making for years,” but above all a report “that should call for action.” She says she is aware that some proposals will be difficult to reach a consensus on, in particular for the question of financing the plan. While she is in favour of recourse to common debt, “this must not be the only source of funding. Private funds will have to be involved. We can’t go into debt indefinitely, and I understand that some countries have doubts. But we’re not just talking about competitiveness. What is at stake is the future of our system based on democracy and on an economy that combines ecology and social responsibility, an economy that serves our values.”
Wiseler-Lima is confident in the EU’s ability to react “as it has always done in the face of major crises.” In the absence of a consensus, she says she is in favour of “a two-speed Europe,” in the hope that the countries that assume their responsibilities will have a knock-on effect on the others. In the meantime, she is confident in commission president von der Leyen’s ability to act in line with the report.
Launching joint loans would be totally illegal
(ADR/CR) is concerned about how the measures suggested in the report will be financed. “We’re talking about €800bn…” For him, the options of increasing national contributions, creating new budgetary resources or issuing a common debt are simply “unacceptable.” “Launching joint loans would be totally illegal if we refer to the treaties. A common debt is not the way forward.”
The MEP would prefer the commission to give priority to procedural reforms “which cost nothing, but which can have a big impact.” In particular, he cites a review of the EU’s trade policy, greater freedom for merger operations to allow the emergence of European champions, a deepening of the internal market and a simplification of European regulations that penalise SMEs. In short, “all initiatives that would have a significant impact without costing the taxpayer more.”
Contacted, (déi Gréng/Greens/European Free Alliance) welcomes the fact that the Draghi report makes decarbonisation an essential element of Europe’s competitiveness. “It is indeed essential to revive the EU’s economy and leadership on the world stage. To achieve this goal and our climate targets, the EU must be the global leader in the green transition and drive a green industrial revolution to deliver on the promise of a Europe that works for people and the planet. The need to give Europe a competitive edge and the green transition of our industry will also be a huge opportunity to improve the quality of life of Europeans, create new jobs and secure our future. The proposed decarbonisation is essential, especially in the transport sector, which remains one of the main contributors to the EU’s greenhouse gas emissions. The report also recognises that the European energy market is still dominated by fossil fuels and other vested interests, and stresses the importance of not creating new energy dependencies that would leave Europe vulnerable.”
Also contacted, (CSV/EPP) declined to comment “on work in progress due to my nomination as a candidate for a post as European Commissioner.”
This article was originally published in .
Updated on 10 September at 16:30 with comment from Tilly Metz.