Mario Draghi"s Economic Blueprint for EU Success and Its Flaws

Mario Draghi expresses significant concern regarding the European Union's economic performance compared to the United States and China, particularly in areas like per-capita income and innovation. He highlights the fragmented structure of the EU's energy market, which has led to higher costs for businesses and households. Draghi proposes scaling up the continent's power grid to enhance reliability and reduce energy costs, potentially decreasing dependence on external sources. However, his advocacy for government-run industrial policies raises skepticism, as it suggests a belief that innovation thrives under state guidance. This perspective overlooks the value of diverse efforts and experimentation in fostering technological advancement. Draghi's report also references China as both a threat and a model, but it may be more prudent to view it as a cautionary tale about the pitfalls of centralized planning. While many of his recommendations are beneficial, the emphasis on industrial policy could hinder the necessary diversity of approaches needed for true economic progress.