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Mario Draghi’s report on revitalising Europe's economy sparked fierce debate in the European Parliament the previous week, with far-left and far-right MEPs voicing strong opposition, while centrist factions, aligned with Commission President Ursula von der Leyen, offered resounding support.
Commissioned by von der Leyen in September 2023, Draghi’s report outlines a series of ambitious economic reforms aimed at halting Europe's economic decline. The proposals include ramping up both public and private investment, streamlining decision-making across the EU, and significantly reducing regulatory burdens on businesses.
What happened in Strasbourg?
Draghi’s presentation of the report in Strasbourg drew harsh rebukes from political extremes on both sides. Manon Aubry, co-chair of the Left Group, accused the former Italian prime minister of hypocrisy, pointing to what she saw as contradictions in the 400-page document. Aubry argued that Draghi’s push to revitalise Europe’s manufacturing sector is incompatible with his support for free trade, which she claims fosters unfair competition. She also criticised his refusal to challenge the EU’s stringent fiscal rules, warning that this would restrict governments’ ability to make necessary public investments.
On the far-right, members of the Patriots for Europe and Sovereigntists groups took issue with Draghi’s call for more joint EU debt, drawing comparisons to the bloc’s €800 billion pandemic recovery fund. Alexander Sell, from Germany’s AfD and leader of the Sovereigntists, was particularly vocal in his opposition. “Germany will no longer foot the bill for other countries’ debts,” Sell declared.
Draghi’s proposals to increase European defence spending also faced pushback. Greek Communist MEP, Lefteris Nikolaou-Alavanos, warned that ramping up defence budgets could transform the EU into a “war economy.” Meanwhile, Jean-Paul Garraud, from France’s Rassemblement National, argued that Draghi’s plan to centralise defence spending would infringe on national sovereignty.
Centrist MEPs Back Draghi’s Vision
Despite the harsh criticism from the far-left and far-right, Draghi’s proposals won the support of centrist groups. Von der Leyen’s coalition of Socialists & Democrats (S&D), Renew Europe, and the centre-right European People’s Party (EPP) rallied behind the report’s key recommendations.
Dutch S&D Vice-Chair, Mohammed Chahim, praised the report’s focus on bolstering public investment, especially in green industrial policies. He stressed the importance of supporting industries in countries like Belgium, the Netherlands, and Germany in their efforts to compete in a rapidly changing global market.
Manfred Weber, leader of the EPP, also lauded Draghi’s analysis, particularly the emphasis on reducing regulatory hurdles, which he said stifled the growth of European start-ups. “Start-ups should be engaging with customers, not drowning in bureaucracy,” Weber argued, calling for an end to red tape that hampers innovation.
Support from ECR and Greens
Additional support came from the European Conservatives and Reformists (ECR) and the Greens/EFA groups. Johan Van Overtveldt, representing the ECR and chair of the Parliament’s Budgets Committee, backed Draghi’s call to ease regulatory burdens, pointing out that the EU creates four times more regulations than the United States—a major obstacle to attracting investment.
Bas Eickhout from the Greens/EFA also welcomed the report’s acknowledgment of green policies as a potential driver for economic growth. However, he criticised Draghi for not placing enough emphasis on social and environmental concerns, warning that Europe’s future prosperity should not be measured by technology and capital alone. “It’s people and the environment that ultimately create sustainable wealth,” Eickhout said.
Divided Path Forward
The heated exchanges over Draghi’s report underscore the deep divisions within the European Parliament regarding Europe’s economic future. While centrists appear eager to move forward with many of Draghi’s proposals, the strong resistance from the political fringes suggests a challenging road ahead. As Europe confronts its economic challenges, balancing growth, social responsibility, and national interests will remain a delicate task.
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