Draghi’s report on the future of European competitiveness: a blueprint for Europe’s demographic and regional cohesion

Europe needs to look further ahead and set out how to remain competitive. This is why Mario Draghi – former European Central Bank President and one of Europe's great economic minds – was tasked by the European Commission to prepare a report of his personal vision on the future of European competitiveness during the State of the Union 2023.

A key focus of Draghi’s report is the demographic challenge Europe is facing. With an aging population and a shrinking workforce, the report emphasises the need for policies that support higher birth rates and attract skilled immigrants. Draghi highlights that without addressing these demographic shifts, Europe risks a significant decline in its economic dynamism and innovation capacity.

In terms of Cohesion Policy, the report underscores the importance of reducing regional disparities to ensure balanced growth across the EU. Draghi advocates for targeted investments in less developed regions to enhance their infrastructure, education, and technological capabilities. This approach aims to create a more inclusive economy where all regions can contribute to and benefit from Europe’s overall competitiveness.

The EU must ensure that more cities and regions can participate in the sectors that will drive future growth, building on existing initiatives such as Innovation Valleys Net, Zero Acceleration Valleys and Hydrogen Valleys. This will require new types of investments in cohesion and reforms at the subnational level in many Member States. Specifically, cohesion policies will need to be re-focused on areas such as education, transport, housing, digital connectivity and planning which can increase the attractiveness of a range of different cities and regions.

President von der Leyen, in her statement at the joint press conference with Mario Draghi, echoed these sentiments, stressing the need for a cohesive strategy that leverages Europe’s diverse strengths. She highlighted the importance of unity and solidarity in tackling these challenges, ensuring that no region or demographic group is left behind.

This report sets the stage for a new era of sustainable growth, aiming to secure Europe’s position as a global leader in innovation and economic resilience.

Access, read and download the full report through this link.

Statement by President von der Leyen.

EU competitiveness: Looking ahead - text of the report

Press conference by European Commission President Ursula von der Leyen and Mario Draghi