Europe needs ‘unprecedented’ investment to close gap with China, US

 Europe needs to significantly increase investment as part of a “new industrial strategy” to remain competitive with the United States and reduce reliance on China, a new report claims.

Last year, EU Commission President Ursula von der Leyen asked Mario Draghi – a former Italian prime minister and European Central Bank chief – to report back on how the 27-country bloc can increase competitivity amid rising global insecurity and economic challenges.

His report published this Monday calls for additional yearly investment of at least €750 billion, amounting to almost five percent of the EU’s gross domestic product.

Draghi acknowledged this would be “unprecedented”, representing a bigger boost than the post-World War II Marshall Plan to rebuild Europe, arguing that it was justified by an “existential challenge” facing the bloc.

“For the first time since the Cold War, we must genuinely fear for our self-preservation, and the reason for a unified response has never been so compelling,” Draghi told a press conference in Brussels to present his report.