Illustration: Liu Xidan/GT
Former European Central Bank president Mario Draghi has issued a warning about Europe’s economic competitiveness. Speaking on Tuesday, he argued that the EU is falling further behind global rivals on growth, while criticizing member states for failing to grasp the urgency of action, according to media reports. His remarks quickly drew attention, highlighting the need for deeper reflection on how the bloc can strengthen its competitiveness. The hope is that this renewed focus will push policymakers to think more seriously about how to balance competition and cooperation in today’s rapidly changing global economy.
In September 2024, Draghi presented a closely watched report that identified the barriers holding back Europe’s growth and offered concrete recommendations to address them. Yet one year later, his tone was notably more somber. “One year on, Europe is…in a harder place,” Draghi told a news conference on Tuesday, the Financial Times reported.
In recent months, the EU has intensified its efforts to strengthen its economic competitiveness. The pressing challenge lies in accelerating progress in frontier fields such as artificial intelligence (AI) and the green economy. Meeting this test cannot be achieved by constraining competitors but rather by reinforcing the bloc’s own capabilities – a task that calls for sustained investment and meaningful structural reform.
In today’s globalized economy, the idea of building competitiveness behind closed doors is increasingly untenable. Interdependence across markets means that sustainable growth depends not on isolation, but on openness – on the capacity to engage with global partners, absorb best practices, and adapt them to Europe’s own strengths.
Europe has made notable strides in several frontier industries. Perceptions of slower progress often arise from comparisons with other major economies that have moved more rapidly in specific domains. Such differences are natural: every economy advances at a different pace depending on its structure and priorities. Where others have gained momentum, Europe has the opportunity to draw strength from cooperation. Working alongside global peers in fast-moving fields can be an effective way to reinforce its own capabilities – a strategy that reflects both economic logic and the realities of an interconnected world.
The one-year assessment of Draghi’s report may well heighten anxiety within Europe about its economic competitiveness. Yet a more constructive outcome would be for the debate to move beyond a zero-sum view of global competition and toward a recognition that competitors’ relative strengths can be effectively harnessed to accelerate Europe’s own development. From an economic standpoint, this is a pragmatic approach – one that frames competition as a catalyst for improvement rather than a threat to be feared.
China is an economic partner rather than an adversary for the EU. It is true that in sectors such as electric vehicles and AI, China’s rapid advances have sharpened competition. Yet those same advances also open the door to potential collaboration. Recognizing both dimensions is essential: competition can spur Europe to strengthen its capabilities, while cooperation with a fast-moving partner like China can create opportunities to share expertise, expand markets, and accelerate the adoption of new technologies.
A key issue to consider is that China’s recent advancements are not a result of so-called overcapacity, but rather stem from the rapid development of cutting-edge technologies. Through collaboration, these technologies have the potential to drive innovation within the EU, thereby accelerating its economic growth.
At the industry level, many European companies have already been deepening cooperation with Chinese partners. Joint research initiatives and expansion into the Chinese market have not only broadened their global reach but also reinforced their competitiveness. For policymakers concerned about Europe’s economic standing, Draghi’s latest warning may sharpen the sense of urgency. At the very least, they should look to these industry-level collaborations for guidance, as they offer valuable insights into how Europe can more effectively strengthen its competitiveness.
The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn