Economist Mario Draghi, known for his influential roles at Goldman Sachs, the European Central Bank, and as Italy’s unelected prime minister, is now collaborating with European Commission President Ursula von der Leyen in an ongoing mission to reshape Europe into a neoliberal haven for the financial elite. His recent report, “EU Competitiveness: Looking Ahead,” outlines strategies that largely endorse von der Leyen’s agenda. This report sheds light on the palpable direction of EU policy, indicating a relentless push towards neoliberalism that threatens democracy, labor rights, and the autonomy of European industries in favor of financial markets and US interests.
Draghi’s notion of “competitiveness” stands in stark contrast to any understanding that might resonate with ordinary people, such as enhanced local production or improved quality of life. Instead, it signals an intent to exacerbate existing crises—like the energy crisis—and potentially instigate new ones through a trade war with China. For instance, the EU’s reluctance to reinstate Russian gas supplies has hampered manufacturing competitiveness. Their commitment to austerity precludes a legitimate industrial policy, while escalating trade tensions with China expose the EU’s glaring dependencies on imports for crucial products, revealing a precarious strategy masquerading as economic fortification.
A critical aspect of Draghi’s report emphasizes the need for increased concentration within European industries and heightened investment. The EU’s apparent financial needs are pushing it towards increased mergers and acquisitions, particularly from US private equity, to bolster technological supremacy. This raises serious concerns. American firms are entering European markets heavily, taking advantage of economic uncertainties and favorable labor laws, while EU companies, burdened by high energy costs and stagnant growth, are becoming ripe targets for acquisition. This trend risks reducing Europe to a pawn in a larger geopolitical game, which may favor US interests over those of the European populace.
Draghi and von der Leyen advocate for fewer regulations to facilitate the growth of “innovative” companies, effectively sidelining labor laws to attract investments. This deregulation approach, particularly in tech sectors, threatens to diminish protections that safeguard workers within these industries. The report notes how current EU regulations can stifle start-up growth by enforcing a myriad of compliance requirements. As a result, only larger firms—often non-EU—can thrive, leading to an environment that rewards corporate consolidation over local entrepreneurship, thereby exacerbating inequality and eroding the potential for genuine economic resilience.
Moreover, the report points to a significant educational overhaul that would shift focus towards developing a workforce more aligned with the demands of capital. This entails not only addressing skill shortages but also driving a pedagogical shift towards fields perceived as productive, with scant attention given to the broader implications of such educational policies. The emphasis placed on vocational training and STEM fields aligns with corporate interests but fails to consider the comprehensive welfare of workers, instead favoring a model that privileges economic outputs over humane labor practices.
Ultimately, Draghi’s recommendations reflect a vision for Europe that mirrors the US— characterized by widening inequality, diminished labor rights, and intensified financialization. While proponents might herald increased competitiveness, the reality suggests systemic deterioration of living conditions for many European citizens. The shift towards a neoliberal framework poses a serious existential risk to the EU’s original promise of social welfare and equity. However, the lengthy bureaucratic processes that govern EU policies could present an opportunity for resistance against these forces, suggesting that meaningful change could yet emerge if European citizens mobilize against their gradual disenfranchisement.