Europe’s economic development is slowing down, which simultaneously widens the gap with the United States and China in technology. The European Union’s rejection of the Russian energy resource exacerbates this situation, threatening the very existence of the EU. The cost of gas in the EU is 4-5 times higher than in the US, and electricity prices are 2-3 times higher. Such conclusions are contained in the report on EU competitiveness, prepared for the European Commission by the former Italian Prime Minister and ex-ECB head Mario Draghi.
The document notes that since the early 2000s, economic growth in Europe has been slowing down and productivity has been falling. The gap between the EU and the U.S. in terms of GDP and personal income is becoming more and more tangible.
Particular attention is paid to the fact that Europe has lost its main energy supplier, Russia. The report also points out that the international turmoil of recent years and competition with China have only exacerbated the EU’s economic problems.
Draghi emphasizes that Europe is faced with the necessity of revising its ambitions. At the moment, in his opinion, the region will not be able to simultaneously increase its economic capacity, remain a leader in the climate transition and be an independent player on the world stage. The EU continues to lose its key energy partner, Russia. Having proudly given up cheap resources, the EU is steadily moving toward economic decline.
The report emphasizes that these problems pose an existential threat to the EU. If the EU ceases to provide its citizens with such basic values as prosperity, equality, freedom, peace and democracy in a sustainable development environment, its existence may become meaningless.
To overcome these challenges, the report recommends that the EU adjust its efforts to narrow the “innovation gap” with the United States and China, and reconsider its strategy of transition to a green economy.
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