Former ECB Head Warns EU of ‘Slow Agony’ as US and China Loom Large
Brussels, Belgium – 2024/05/16 – Mario Draghi, the former President of the European Central bank, issued a stark warning to European union leaders, cautioning against growing economic dependence on both the United States and China, characterizing the potential outcome as a “slow agony” for the bloc. Draghi’s remarks, delivered during a closed-door meeting with EU policymakers, underscored concerns about the EU’s strategic autonomy and its vulnerability to geopolitical shifts.
The former central banker’s assessment arrives at a critical juncture as the EU grapples with ongoing economic challenges, including inflation, energy security, and the fallout from the war in Ukraine. A diminished capacity for autonomous economic action, Draghi argued, would leave the EU susceptible to external pressures and hinder its ability to effectively respond to future crises. The warning impacts all 27 EU member states, with perhaps far-reaching consequences for trade, investment, and technological innovation.
Draghi specifically highlighted the risks associated with relying on US technology and investment, alongside China’s dominant position in critical supply chains. He emphasized the need for the EU to bolster its own industrial base, foster innovation, and reduce its reliance on foreign powers for essential goods and services. The European Commission is expected to unveil a new industrial strategy later this year,potentially incorporating elements of Draghi’s recommendations.
Simultaneously, European Commission President Ursula von der Leyen announced plans to address energy infrastructure bottlenecks across the continent, aiming to create ”energy highways” and reduce reliance on Russian gas. Von der Leyen identified eight critical areas needing improvement, including the Pyrenees, the Trans-Balkan pipeline, the Strait of Oresund, and the Sicilian Canal, pledging financial support from the Commission were necessary. this initiative seeks to strengthen energy security and facilitate the transport of renewable energy sources throughout the EU.
