Brussels holds its breath for Draghi’s delayed report

Mario Draghi, the former President of the European Central Bank, is set to present his report on European competitiveness to EU diplomats and parliamentary leaders on September 4. The report, which remains confidential even within the European Commission, is expected to address the need for substantial funding, estimated at €500 billion annually, to support the green and digital transitions in Europe. Draghi has previously expressed concerns about the geopolitical implications of climate policies, particularly regarding dependencies on China and the US, emphasizing the importance of securing supply chains for critical resources. In his earlier speeches, Draghi acknowledged the necessity of climate action but focused primarily on economic and geopolitical aspects rather than environmental impacts. This has raised questions about the future of the Green Deal, as some speculate that his report may challenge certain elements of it. Ursula von der Leyen, who commissioned the report, has advocated for a pragmatic approach to achieving Green Deal targets, indicating potential tensions between advancing green policies and maintaining support from her political allies. The timing of the report's release has been scrutinized, with concerns that Draghi's calls for increased public funding could provoke backlash from fiscally conservative policymakers, particularly in Northern Europe. Additionally, past meetings between Draghi and EU Commissioners have reportedly been contentious, with Draghi criticizing the current Green Deal framework's impact on competitiveness. As the EU approaches elections, von der Leyen faces the challenge of balancing the demands of various political factions while leveraging Draghi's findings to shape a more realistic implementation of green policies. The outcome of this report could significantly influence the EU's future direction regarding climate action and economic competitiveness.