EU must stop dragging feet on Draghi’s call for massive investments

One year after the EU welcomed Mario Draghi's landmark report on boosting Europe's competitiveness, delivering a stark warning that Europe needs €800 billion in annual investments beyond what banks can finance, enthusiasm has faded. Only 11% of his recommendations have been acted upon.

Today, under the lead of S&D MEP Aurore Lalucq, the European Parliament adopts its own report on implementing Draghi's advice. For the Socialists and Democrats, the message is clear: Europe must heed Draghi's calls to better use public investment to unlock private capital and to further integrate capital markets.

Jonás Fernández, S&D spokesperson on economic and monetary affairs, said:

"When we talk about productivity or so-called 'competitiveness', the European Commission should have no higher priority than completing the Single Market, developing the new Saving and Investment Strategy, and deepening the integration of capital markets.

"Private investment and deeper market integration alone will not cover Europe's needs. That is why we strongly support calls in this report to make better use of public investment at national and EU levels, to help mobilise private capital and boost productivity. The issuance of a common safe asset could play an important role in addressing the significant investment gaps in the EU identified by the Draghi Report, and help facilitate the completion of our Capital Markets Union."

Aurore Lalucq, S&D MEP and European Parliament's rapporteur on the Draghi report, said:

"We are particularly proud that the European Parliament has largely recognised the crucial role public investment must play during this mandate, especially since key sectors may not immediately deliver profitability.

"It is now up to the European Commission to take further steps and to understand that the Savings and Investment Union means keeping our savings inside the EU to boost our own potential, rather than fuelling the growth of third countries. If we continue to sell ourselves to the United States, as the recent EU-US deal clearly suggests, we risk undermining our own future."

Note to editors:

The report on EU Competitiveness, prepared by former Italian prime minister and former European Central Bank president Mario Draghi, outlined how to better channel household savings towards productive investments through the Capital Markets Union.

In response, the European Parliament's committee on economic affairs drafted an own-initiative report to follow up on these recommendations, focusing on mobilising private investment through a Savings and Investments Union and ensuring public resources are used effectively to strengthen EU productivity.