Draghi calls for an investment package worth billions for the EU!

Draghi calls for an investment package worth billions for the EU!

In Budapest, EU leaders held a crucial meeting to secure Europe's economic future. The focus was on a comprehensive report by former ECB boss Mario Draghi, which was prepared on behalf of EU Commission President Ursula von der Leyen. Draghi calls for massive investments in the areas of economy, defense and climate protection. Particularly explosive is the impending threat of an economic war with the USA under future President Donald Trump, who has already announced during the election campaign that he would introduce new tariffs on imports, which could put a heavy burden on the European economy Mercury reported.

The talks in Budapest were not only about the threat of tariffs, but also about strengthening the competitiveness of European companies, which are coming under pressure from high subsidies from the USA and China. Austria's Chancellor Karl Nehammer emphasized the need to avoid an economic war and to establish clear negotiating rules. The leaders called on the European Commission to present a comprehensive strategy to deepen the internal market by June to boost innovation and growth.

Investments and financing in focus

Draghi pointed out that Europe urgently needs to invest in its infrastructure in order to compete globally. However, the financing of these investments remains a contentious issue. Germany rejects new debt, while other countries are considering this option. Leaders agree on the need to mobilize both public and private resources. The closing statement of the meeting emphasized that all available instruments should be used to raise the necessary funds.

The discussion about financing is reinforced by the fact that there are around €33 trillion in private savings in the EU, mostly in cash and deposits. Every year, around 300 billion euros in savings flow abroad, primarily to the USA. Ursula von der Leyen therefore called for urgent progress in the integration of European capital markets in order to mobilize more private money for valuable investments.

The geopolitical challenges

The geopolitical challenges arising from a possible Trump presidency should not be underestimated. Draghi warned that relations between Europe and the US could change dramatically. The EU must now act proactively to protect its interests and adapt to the new conditions. The heads of state and government agree that Europe can no longer wait and must take action to ensure its own competitiveness.

In summary, the EU is facing a crucial phase. Leaders have recognized the need for immediate action to ensure economic stability and guard against looming challenges from the United States. The coming months will be crucial in setting the course for a strong and resilient European economy Deutschlandfunk reported.