In a few hours' time, the former President of the European Central Bank will publish the report on competitiveness commissioned from him by the President of the European Commission.
More than 400 pages will summarise his thinking on the European economy and his proposals, which are sure to ‘’ rock the boat‘’, because while we are waiting for his precise proposals, we already know the substance of his thinking.
The saviour of the euro has identified better than anyone else Europe's economic stagnation in comparison with the United States and China.
Far from the clichés, he is an economist whose analyses surpass in quality and relevance the Pavlovian speeches that are all too often heard in European circles.
His proposals are bound to stir up debate. They will suggest greater pooling of European forces in terms of investment, savings, industrial policy or defence, which many will analyse as a request to accelerate the federalisation of the Union. Mario Draghi will not be content to accept that a dispersed Europe is losing its footing in international competition, when in fact it has strengths and assets equivalent to those of its major competitors.
But we should not overlook the criticisms he will be levelling at current policies, even if sometimes only between the lines. Fiscal and monetary ‘rigour’ are also responsible for Europe's fall from grace. Although he is not a fan of debt, Mario Draghi will be highlighting the gigantic financing requirements of environmental and digital transitions, which can only be met by means of a common debt, and for this he is not afraid of a new loan.
Will the Member States, particularly the most frugal ones such as the Netherlands and Germany, finally agree to take account of the modern economy and return to the path of growth?
Tightening the belt and debt
While it is clearly necessary to rein in some of Europe's operating expenses, new debt is essential to revive investment, which is a prerequisite for a return to growth, for European industry to stay in the race against the United States and China, and for the single market to benefit more from domestic consumption and thus support household purchasing power, whose stagnation is fuelling the extremes.
A debate must therefore be opened on who needs to make cuts and which debts to accept.
Mario Draghi is ahead of many of Europe's economic leaders, who are still steeped in archaic concepts from which, for example, the German economy is suffering in particular.
His report should therefore be read in its entirety. It calls for a revolution that is far more important than any change in treaties: a revolution in thinking and public policy.
