Europe’s ‘Reason for Being’ at Risk as Competitiveness Wanes, Report Warns

Original Report: www.nytimes.com(full story)

A recent report warns that Europe must boost public investment by nearly $900 billion annually in technology and defense to remain competitive with the U.S. and China. Former ECB President Mario Draghi emphasized the existential challenge for the EU, stating that failure to provide security and prosperity would undermine its purpose. The report highlights the need for an additional annual investment of around 800 billion euros, about 4.5% of the EU’s GDP, in light of changed conditions post-pandemic and due to the Ukraine conflict, leading to increased energy prices and reduced competitiveness. The EU faces pressures to raise military spending and improve its growth and investment rates compared to the U.S. and China, which are advancing in tech and green industries.