Mon Sep 09 14:22:55 UTC 2024: ## Europe Needs Massive Investment Boost to Meet Its Goals, Says Draghi

**Brussels, [Date]** – Former European Central Bank President Mario Draghi has warned that the European Union must drastically increase its investment to meet its goals, particularly in defense, digitalization, and climate action. In a report on the bloc’s competitiveness, Draghi urged Europe to invest more than twice as much in its economy as it did after World War II.

“To digitalize and decarbonise the economy and increase our defense capacity, the investment share in Europe will have to rise by around 5 percentage points of GDP,” Draghi wrote. He compared this to the Marshall Plan, which provided around 1-2% of GDP annually to aid Western Europe’s recovery after World War II.

Draghi emphasized the need for a significant increase in defense spending, citing the European Commission’s estimate that €500 billion in additional investments will be needed over the next decade. He pointed out that the EU’s fragmented defense industry, relying heavily on the US for protection, is unable to produce at scale.

The current geopolitical environment, marked by the war in Ukraine, necessitates a stronger European defense, according to Draghi. He warned that without action, the EU will have to compromise its welfare, environment, or freedom.

To achieve strategic independence, Draghi suggested the EU issue new debt to fund its needs, a move that has been opposed by some member states, including Germany, Denmark, Finland, and the Netherlands. The bloc’s current government debt to GDP ratio stands at nearly 82%.

While the US has long played a key role in the EU’s defense, the White House has been sending additional forces to Europe since the outbreak of the conflict in Ukraine. Some European nations, including the Czech Republic and the Baltic states, have expressed concerns about potential Russian aggression.

Russia has repeatedly denied any intention to attack NATO countries. President Vladimir Putin stated in June that Russia has no “imperial ambitions” and dismissed allegations of a threat to NATO as “nonsense.”

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