Changes from report parliamentary committee draft to plenary report

In her 2023 State of the Union Address, Commission President Ursula von der Leyen announced that she asked Mario Draghi, former President of European Central Bank (2011-2019) and former prime Minister of Italy (2021-2022), to prepare a report on the future of European competitiveness. Mario Draghi delivered his report on the future of European competitiveness on 9 September 2024.

The Draghi report warns that declining competitiveness, compounded by geopolitical instability and crises such as Russia’s war in Ukraine, poses an existential threat to the EU. The report highlights a widening productivity gap with major economies—especially the USA— due to underinvestment in innovation, digitalisation, and skills. It identifies high energy costs and strategic dependencies, particularly in digital technologies, as key barriers.

To close the investment gap, the EU must mobilise approximately EUR 750–800 billion annually (equivalent to 4.4–4.7 % of EU GDP) from 2025 to 2030, targeting strategic sectors such as green energy, digital infrastructure, R&D, defence, and advanced manufacturing. These efforts must be supported by regulatory simplification and stronger EU coordination.

In response, the Commission launched the Competitiveness Compass in January 2025, focusing on innovation, decarbonisation, and economic security. The Commission’s proposal of 16 July 2025 for the 2028-2034 MFF includes a European Competitiveness Fund and a streamlined performance framework for the EU budget post-2027.

The Rapporteur considers that in the context of the implementation of a future European competitiveness strategy, the effectiveness of EU financing measures must be carefully monitored and assessed. The sound financial management of EU funds should be monitored with only relevant and pertinent performance indicators that capture the EU’s progress in increasing its competitiveness. This is only possible through a robust performance framework built on performance indicators that are specific, measurable, achievable, relevant, and time-bound (SMART). Performance indicators must be carefully designed and should capture not only outputs (e.g. number of projects financed) but also outcomes and impacts (e.g. productivity gains, reduced emissions, jobs created, ratio of private equity mobilised in EU programmes), in order to measure the efficiency and effectiveness of EU spending. With a comprehensive set of performance indicators, it will be possible to evaluate both the direct effects of the financing on the economy as well as the long-term sustainability and growth of European competitiveness.