EU at a Crossroads: Draghi’s Competitiveness Plan and Its Implications for Cooperatives

Mario Draghi, Italian economist and former President of the ECB, presented yesterday his much-anticipated report on the future of Europe’s competitiveness. This report encompasses recommendations for the new Commission on how to tackle the economic and competitiveness challenges that the EU is currently facing. This report is a plea for the EU to provide a clear strategic direction to its industrial and trade strategy, with an underlying focus on investment and legislative simplification.  

Draghi’s candid assessment and recommendations provide a solid foundation for meaningful dialogue about Europe’s economic future. The Draghi report focuses on four main areas set to reshape the European economic landscape: closing the innovation gap, boosting decarbonisation policies for growth, increasing security while reducing dependencies, and mobilising investments to drive these transitions. Within these four areas, there are various aspects that present both opportunities and challenges for the cooperative movement. 

Notably, many aspects of this report echo the longstanding concerns of Cooperatives Europe. The recognition of the need to close the skills gap in strategic industries and the acknowledgement of excessive administrative burdens as obstacles to innovation and finance access are particularly resonant. These points align closely with the issues we’ve been advocating for years. 

While the report doesn’t explicitly mention the social economy or cooperatives, its emphasis on preserving social inclusion while boosting business competitiveness aligns well with cooperative values and practices. This approach suggests a promising direction for future policy development. 

However, some elements warrant a more precautionary approach. Draghi’s vision of “EU’s fragmented approach to State aid” and idea to introduce “a new EU-wide legal statute for innovative start-ups” is one such area. While potentially beneficial, we’ll need to work to ensure it accommodates cooperative principles and doesn’t inadvertently disadvantage the cooperative model.  Similarly, any changes to the EU’s approach to State aid will require our close attention to advocate for fair treatment of cooperatives within any new framework. 

As we look ahead, Cooperatives Europe will be monitoring how Draghi’s recommendations are incorporated into future EU policies. We’re committed to advocating for cooperative interests throughout this process and ensuring our members’ voices are heard.  

The Draghi report represents a significant moment in shaping the future of the European economy. As cooperatives, we have a unique opportunity to contribute to and benefit from these proposed changes, ensuring that the future of Europe’s competitiveness is built on principles of cooperation, sustainability, and social responsibility. 

 Find the full report and the recommendations here.