Urgency to Act: EU's Growth Model at a Crossroads

Mario Draghi, former European Central Bank president, has sounded an alarm over the European Union's lagging growth, emphasizing a dire need for immediate action. On Tuesday, Draghi expressed concerns that the current EU growth model is quickly becoming obsolete, failing to meet the pace set by global competitors.

Addressing top EU officials, including Ursula von der Leyen, he criticized the slow implementation of ambitious plans and highlighted the threat posed by U.S. tariffs and an increasing trade deficit with China. Draghi stressed the need for unified efforts, stressing that failing to change course now would lead to the EU falling irreversibly behind.

Draghi pointed to significant gaps in the AI industry and the challenges posed by steep energy prices as areas requiring immediate focus. He advocated for reforms to unleash private investment, suggesting that breaking long-standing taboos and reducing dependence on public funds are key to revitalizing the EU's competitive edge.

(With inputs from agencies.)