EU needs 800 billion euros of investment per year to keep up with the US and China.

The person who previously headed the European Central Bank, Mario Draghi, called on the European Union to invest up to 800 billion euros annually to catch up with the United States and China, Bloomberg reports.

In his long-awaited report on the competitiveness of the European Union, Draghi called for the development of advanced technologies, achieving climate goals, and strengthening the security of critical resources, calling this an "existential challenge".

According to Draghi, Europe needs to increase investments by 5% of GDP, a level not seen for more than 50 years, to transform its economy in such a way that it is competitive.

He warned that the EU's economic growth is slow compared to the United States, which casts doubt on the ability of the European bloc to implement a digital and decarbonized economy quickly enough to compete with its competitors in the east and west.

"For the first Time since the Cold War, we really have to worry about our self-preservation," Draghi told reporters in Brussels. "And there have never been so many reasons for a united response, and I am confident that we will find the strength for reforms in our unity."

The Draghi report notes that economic growth in the EU over the past two decades has been slower than in the United States, due to fewer achievements in terms of employability.

In particular, Germany has become a weak link due to high energy prices and a loss of competitiveness to China. The gross domestic product of the largest economy in the eurozone slightly exceeds pre-pandemic levels.

The consequences of the slow response to challenges related to US financial incentives for the "green" transition and China's aggressive industrial plans, which are investing billions of dollars in subsidies, are already being felt in some key sectors.

Source: Ekonomichna Pravda