Home » Draghi: the EU needs an investment fund with large resources. 500 billion immediately

Draghi: the EU needs an investment fund with large resources. 500 billion immediately

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Draghi: the EU needs an investment fund with large resources.  500 billion immediately

ROMA – Mario Draghi probes the willingness of EU countries to create a new Fund, with the mission of supporting the competitiveness of Europe, which is lagging behind the USA.

At the informal Ecofin meeting in Ghent, the former president of the ECB and former prime minister estimates the firepower at least 500 billion necessary, every year, just to support the green and digital transition.

They should be added to this figure resources for defense and those for productive investments. Only in this way will we be able to keep up with the Americans.

After the US prime mortgage crisis (end 2016) and the sovereign debt crisis in Europe (2010), it took the United States only two years to recover lost ground; the EU, 9.

Diagnosis and therapy

Draghi – very decisive in diagnosing community needs – is prudent when suggesting an operational solution.

Deciding on a therapy – among the various possible ones – is up to national states alone. A Fund can be launched, common debt can be issued as in the months of the pandemic or leverage the EIB’s resources (the latter solution would be capable of mobilizing private investments).

On the topic of private investments, the former president of the ECB takes a long shot. Public resources – he explains – are no longer enough also because they are harnessed from the new Stability Pact.

The rigorist Nazioni

The games are currently still open. But the “rigorous” states –from Germany to Sweden – they would have already started a barrage towards any hypothesis of common indebtedness.

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Before the meeting, Draghi explains to the journalists waiting for him: “Many profound changes have occurred in the global economic order in recent years. These changes have had several consequences. One of them is clear: in Europe we will have to invest a huge sum in a relatively short time“.

“And I can’t wait to start this discussion to find out what the finance ministers think and what they are preparing on how to finance these investment needs.”

Draghi: “A common debt would help in a world in turmoil, between autocrats and globalization” by Economics Editorial Staff 15 February 2024

“Here I am not just referring to public money, but also to private savings. How these private savings would be mobilized to a much greater extent than in the past.”

“We are here – continues Draghi – for an initial exchange with various interested parties for the preparation of the report on the competitiveness of Europe“.

The many wars

The Vice President of the European Commission, Valdis Dombrovskisadds: “It will be important to identify the factors that influence our competitiveness, so that this can be prolonged in the long term”.

And immediately afterwards he makes it clear that the wars on the field – from Ukraine to Palestine – require a broad perspective: the competitiveness of the EU must be increased, but also think about new forms of military defense.

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