My main goal for the Committee on Economic and Monetary Affairs (ECON) in the upcoming term is simple: To avoid the “agonising decline” described by Mario Draghi in his recent report on the future of European competitiveness, we need to invest significantly in key industrial sectors.
The EU is at a critical juncture, with recent crises – such as the Covid-19 pandemic, the war in Ukraine and the energy crisis – exposing the weakness of Europe’s industrial capacity. This is the result not only of decades of underinvestment, but also the absence of a clear political vision for the future.
We can still reverse this declining trend. Decline is, above all, a political choice, and it is up to EU leaders and policymakers to define key priorities and adopt a clear industrial strategy to steer the EU towards a more resilient economic future. Other “superpowers” have understood the need for direct action and strategic investments. Our main rivals have adopted a clear path and a strong industrial strategy. We now need to do the same. We need to adopt our own systemic doctrine, just like the US and China before us.
To do so, directing investments into the green and digital transitions will be crucial. The Draghi report has served as a wake-up call, estimating the need for an additional investment of nearly five per cent of the bloc’s GDP.
There is a growing emphasis on the role of private finance, and while this is necessary, private finance alone will not enable us to build the sustainable industrial strategy the EU deserves.
Our committee has been a strong advocate for a banking union and a capital markets union. Despite being recognised as crucial for EU competitiveness and deeper European integration, these projects have been stalled by national interests. My colleagues and I remain committed to making these two projects a reality.
Nevertheless, we must ensure the need to mobilise private finance does not translate into a pressure to deregulate, as further loosening rules could heighten the risk of another financial crisis – an outcome the committee is determined to avoid. The real debate, therefore, will centre on finding a balance between promoting competitiveness and ensuring the robustness of the EU’s financial architecture.
We must also explore how to enhance the capacity of member states and of the EU itself to invest significantly. The funding provided through NextGenerationEU and the implementation of the Recovery and Resilience Facility has set a strong precedent for the use of a common safe asset. However, this funding is scheduled to end in 2026. What follows will undoubtedly spark intense political debate and demand bold decisions.
Therefore, the role of our committee will be to foster dialogue and to find new solutions to help prevent the EU from falling into economic decline and pave the way for a more prosperous and strategically autonomous future. The challenges are significant, but with the right policies and investments, the EU can regain its position as a global economic leader.