Commentary of Elena Sidorova and Daria Moiseeva for Izvestia

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September 11, 2024 Head of the Sector of International Monetary and Financial Relations of the Department of Global Economic Problems and Foreign Economic Policy of IMEMO Ph.D. (economics) Elena Sidorova and senior researcher of European Union Research Sector of the Center for European Studies of IMEMO Ph.D. (politics) Daria Moiseeva commented on the concept of Draghi’s plan,  which will become a basic element of the policy of the new European Commission

According to Draghi`s calculations, up to €800 billion will be needed annually. Ten years ago, when the “Juncker Plan” was announced with a figure of €300 billion of investment over three years (2015–2017) for European industry, they were already talking about a chronic lack of investment. According to the reports of European politicians, the investment plan was fulfilled: it seems that there were more jobs created, and there was also a positive effect on the economic growth of the EU. However, problems with competitiveness have not been resolved.

Today the EU is already directly talking about “lost” industries, where leadership has been lost and is unlikely to return. As a result, today the figure of investment needed has grown to €800 billion, the list of problems has expanded, and there is a feeling that in the “perfect storm” that European competitiveness has found itself in, even these sums may not be enough. Although there are doubts that this money will actually be found in full volume.

In parallel, the European Union will have to solve the problem of restoring its defense capability – this is also an extremely costly undertaking. None of these intended goals can be achieved without a strong centralized government. The report was commissioned and presented by the European Commission, so it is natural that it speaks of greater centralization of power in the hands of EU leaders. Draghi insists on de-bureaucratizing processes and strengthening the powers of Brussels...

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