Europe needs to increase investment, including through joint borrowing under the new industrial strategy, to keep up with the United States and avoid dependence on China. According to Agence France-Presse, this is stated in the report of the European Central Bank, UNN reports.
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Last year, EU President Ursula von der Leyen asked Mario Draghi, former Italian Prime Minister and President of the European Central Bank, to report on how the EU can improve competitiveness in the face of growing global instability and economic challenges.
The European Central Bank's report calls for additional annual investments of at least 750-800 billion euros, which is almost 5% of European GDP. Draghi called it an "unprecedented" step, bigger than the Marshall Plan to rebuild Europe after World War II. He justified it by the "existential challenge" facing the bloc.
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Draghi's plan includes about 170 proposals. It emphasizes the need to close the "innovation gap" with the United States and China. He noted the EU's weakness in new technologies that will drive future growth and advocated for investments to finance Europe's priorities, from strengthening its defense industry to achieving ambitious decarbonization goals, while avoiding dependence on Chinese clean technologies through targeted support for specific industries.
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Referring to the EU's historic Covid recovery fund, Draghi said the bloc should issue new "joint debt instruments to finance joint investment projects that will enhance EU competitiveness and security." However, aware of the protest voices, Draghi said that joint loans would only be possible when "political and institutional conditions are met.
The other way, he said, is to better mobilize private capital in the bloc, advocating for progress in the long-standing quest for a "capital markets union" in the EU.
During the press conference, Von der Leyen did not directly address the issue of joint borrowing, instead pointing to national contributions and other sources of revenue that will go to the EU budget.
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Portuguese Foreign Minister urged the EU to prepare to accept Ukraine. He emphasized the need for financial and institutional reforms in the EU for this purpose.