Europe ‘failing to match speed’ of economic rivals US, China: Draghi

BRUSSELS, (Belgium): The European Union is “failing to match the speed of change” in the United States and China and must act urgently on economic reforms to avoid falling further behind, a key report’s author said Tuesday.

Former European Central Bank chief and Italian leader Mario Draghi delivered stark warnings a year ago in the 400-page report, telling Europe it needed rapid change to keep pace with global rivals.

European citizens are “disappointed by how slowly the EU moves. They see us failing to match the speed of change elsewhere”, he told a conference in Brussels. “Too often, excuses are made for this slowness.”

He told Europe that “to carry on as usual is to resign ourselves to falling behind”, calling for “results within months, not years”.

One year on, the challenges Europe faces have only grown more acute, Draghi warned, with the global trade order shifting since the arrival of US President Donald Trump in January.

Trade tensions, high public debt among EU countries and the exposure of Europe’s high dependencies on other countries have reminded the bloc, “painfully, that inaction threatens not only our competitiveness but our sovereignty itself”.

Speaking before Draghi, EU chief Ursula von der Leyen also said the 27-country bloc had to act faster while defending her record thus far.

She pointed to steps taken by Brussels on artificial intelligence, higher defence spending and cutting red tape to make life easier for companies.

But she took a swipe at the European Parliament, suggesting it was moving too slowly on approving the European Commission’s push to cut administrative burdens.

“We need urgent action to face urgent needs, because our companies and workers can no longer wait,” she said.