Draghi Report: tackling EU's energy problem

Watching the Tides - Marchel Alexandrovich

“If Europe’s ambitious climate targets are matched by a coherent plan to achieve them, decarbonisation will be an opportunity for Europe. But if we fail to coordinate our policies, there is a risk that it could run contrary to competitiveness – and ultimately be delayed or even rejected.” Mario Draghi, The future of European competitiveness, 2024 

As highlighted by Mario Draghi in his seminal report on the future of Europe, a successful green transition could become one of the key pillars to help improve the region’s competitiveness and its growth prospects. Compared to the US, over the past two decades, Europe has seen weaker productivity growth coupled with slower population growth, such that it is now a substantially smaller economy than the US. In constant terms, the US economy is around 30% larger in size than the EU, compared to being only 17% larger in 2002. In PPP terms, two decades ago, the EU was around 4% larger than the US, now it is 12% smaller. As Draghi writes, during th…