At a conference hosted by the European Commission this week marking the first year since the release of the Draghi Report, President von der Leyen delivered a keynote speech in presence of Professor Mario Draghi. The Presidents speech was the occasion to highlight the EUs path towards a competitive and prosperous Union as well as the progress that has been achieved in the past year.
The President focused on the three pillars of the report: closing the innovation gap, a joint plan for decarbonisation and competitiveness, and the need to reduce dependencies.
On innovation, President von der Leyen spoke in particular of artificial intelligence. She highlighted: “Global leadership is still up for grabs. And Europe is not only a challenger but a leader in many fields that will define this race. Europe is well positioned in the world of AI adoption. We have started using AI to boost productivity. This time, Europe is not playing catch-up – we are among the frontrunners.”
She spoke about the EUs advantages, such as its powerful network of supercomputers, and Commission initiatives in the field, such as AI Factories and Gigafactories. At the same time, the President recognised the challenges that remain and described future Commission actions that will address those challenges: the European Competitiveness Fund and a Single Market Roadmap to 2028. “The Competitiveness Fund will be the centrepiece of the next European budget – with a proposed firepower of over €400 billion. That includes a rise of twice more money for research, five times more money than today for digital. Six times more for clean tech”, the President emphasised. The President further said: “Our Single Market is far from complete. Internal barriers within the Single Market are equivalent to a 45% tariff on goods and a 110% tariff on services says the IMF. This cannot be. It should not be easier to find fortune across an ocean, than across European borders.”
On the joint plan for decarbonisation and competitiveness, the President talked about the need to bring down energy costs: “We know the core reason why we pay higher bills than our competitors. Europe is too dependent on imported fossil fuels. But we also know the solution. That is homegrown energy – renewables, with nuclear as a baseload. This gives us energy security and independence as it is homegrown and creates good jobs in Europe.”
She highlighted some of the initiatives undertaken by the Commission such as the Wind Package and the Clean Industrial Deal, and she referred to some of those announced during her State of the Union address, including a Grids Package and the Energy Highways initiative to address eight critical bottlenecks in energy infrastructure.
On the pillar about reducing dangerous dependencies, President von der Leyen stressed: “Today, a single country controls 75% of the processing of cobalt, 90% for rare earths, 100% for graphite. This is a critical situation. But there is nothing inevitable about it. With the right policies, we can shore up our security and build our independence. And this is what Europe is up to today.”
She underlined the progress made to diversify trade, including through new trade agreements with Mercosur, Mexico and Switzerland, as well as ongoing talks with India, South Africa, Malaysia, and the United Arab Emirates.
The President also added: “Of course, the work for economic security begins right here at home. This year, we selected 47 strategic projects across Europe under our Critical Raw Materials Act. We will focus our financial support on these crucial endeavours, and we will ensure that all the permitting is granted in due time. From copper and cobalt mining in Finland, to lithium processing in Portugal, to battery recycling in Italy.”
Furthermore, she also spoke of the EUs need to be more independent in defence. “It is crystal-clear that Europe must now carry the lion-share of its own security,” she said, underlining the crucial role of Readiness 2030 and SAFE, which will provide €150 billion for joint defence procurement.
The President commended the speed with which the EU collectively agreed on SAFE and insisted that the same level of urgency is needed for the competitiveness agenda. She called on co-legislators to approve the simplification proposals put forward by the Commission and said that the Commission itself will also do its part to deliver.
President von der Leyen concluded her speech highlighting the great potential for cooperation and success: “I am absolutely convinced that Europe can unite around this agenda. Every single Member State has endorsed the Draghi report. And so has the European Parliament. We all know what needs to be done. And business as usual does not work anymore. This is what the people of Europe expect from us. They expect our democracy to decide, act and deliver. And I know that Europe can make it.”
More information:
Website – The Draghi report: one year on
