“OR European Union It must improve its ability to defend itself in a new world dominated by wars and relentless geopolitical. ” This dramatic warning was addressed Friday (22.08.2025) by the former head of the European Central Bank, Mario Draghi.
‘For years, The European Union believed that its financial size, with 450 million consumers, provided it with geopolitical power and influence on international trade relations. 2025 will remain in history as the year in which this illusion has been dismantled, “he said Mario Draghi During the annual conference of Rimini, an important event of Italian political life associated with a universal union.
THE Draghiwhich in 2024 drafted a report with proposals to strengthen the Union’s economic development, stressed that the EU It must be adapted if it wants to survive.
The critical challenge arises, according to some analysts, as a “very hard awakening by Trump”.
Draghi’s “bells”
“We were forced to accept duties from our largest commercial partner and timeless ally, the United States”characteristically stated in his statements Mario Draghireferring to the shift of American policy. “The same ally has prompted us to increase our defense spending – a decision we might make anyway, but on conditions that may not reflect Europe’s interests.”
Despite its economic power, the European Union plays only a “marginal” role in Trump’s peacekeeping efforts in Ukraine, has been a “observer” in the massacre in Gaza, while “China has made it clear that it does not consider Europe an equal partner”says Draghi.
“Europe is not well equipped for a world where geo -economic strategies, security and stability of supply sources – and not efficiency – determine international trade relations,” warned Draghi, former Italian prime minister. “Our political organization must be adapted to the demands of the time when they are existential.”
Returning to Europe’s firm position to enhance Europe’s competitiveness, Draghi pointed out that, according to the International Monetary Fund, if the internal barriers to the EU single market were reduced to US levels, labor productivity in the EU could be 7% higher.
These internal obstacles also affect the efficiency of military spending. Although EU member states intend to increase their defensive investments by € 2 trillion by 2031, “we are facing internal barriers that impose duties of 64% on defense equipment and 95% on metals,” Draghi noted.
“This leads to slower bidding processes, higher costs and greater dependence on suppliers outside the European Union,” he added.
What does it suggest
Draghi suggested The Union to issue common European debts to boost costs in defense, research and development, infrastructure and innovative technologies – A proposal that meets resistance from the so -called “spicy” countries.
“Only common forms of funding can support large -scale European projects, which cannot be implemented by fragmented and inadequate national efforts,” he said.
European governments, according to him, must also decide on common industrial and commercial policies, reduce internal obstacles and “agree to fund the huge investments of the future, ranging from € 1 and € 2 trillion per year”.
Fastest economic growth and political reforms that will ensure a more functional EU is, according to Draghi, the price for the union to acquire true geopolitical influence.
«To meet today’s challenges, the EU must stop playing a secondary role and turn into a key player“, Said the Italian former prime minister and former European banker.