Mario Draghi, widely remembered for his famous “whatever it takes” pledge that helped save the eurozone during the global financial crisis, has once again stirred debate in Europe with a strong and timely message.
Over the years, Draghi has been one of the loudest voices calling for deeper European integration and major reforms in how the European Union functions. His 2024 report, often referred to as the Draghi Report, laid out ideas on how Europe could become more competitive globally. While the European Commission has taken some inspiration from it, Draghi believes progress has been far too slow.
Speaking earlier this week at KU Leuven University in Belgium, the former Italian prime minister addressed Europe’s current position in the world and delivered a blunt warning. He agreed with growing concerns that the existing global economic order is falling apart, going as far as to describe it as “defunct” and “dead.” However, he stressed that the real danger is not the collapse itself, but what could replace it.
According to Draghi, Europe is caught between two powerful forces. On one side is the United States, which he said increasingly focuses on the costs it has carried over the years while overlooking the benefits it has gained. On the other is China, which he accused of controlling key parts of global supply chains and using that power to its advantage by flooding markets, limiting access to vital materials, and shifting the burden of its economic problems onto others.
EUROPE MUST MOVE FASTER OR FALL BEHIND, DRAGHI WARNS
He warned that if Europe fails to act, it risks becoming weaker, more divided, and leDraghi also argued that Europe must fundamentally change how it operates. He said the current situation demands a move from a loose confederation of states to a true federation. Where Europe has already united — such as trade, competition policy, the single market, and monetary policy — it is respected and able to negotiate as one. But in areas where it remains divided, like defence, industrial policy, and foreign affairs, it is treated as a collection of medium-sized countries that can be easily split and pressured.
He warned that Europe’s strengths in trade cannot make up for its weaknesses in security. A Europe that is united economically but divided militarily, he said, will see its commercial power used against it.
Pointing to recent U.S. threats involving Greenland, Draghi said the situation forced Europe to clearly assess its ability to act. He noted that a firm response to a direct threat connected more strongly with the public than any carefully worded summit statement ever could.
Draghi’s speech is expected to spark serious debate among EU leaders and analysts. Many believe it is a defining moment for Europe — and one that policymakers cannot afford to ignore.
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