Competitiveness and economic security- How should EU trade policy contribute to the objectives of the Draghi report?

Background

In a changing world with new challenges, the European Union is focused on staying competitive and prosperous. This is why Mario Draghi was tasked by the European Commission to prepare a report on his vision on the future of European competitiveness.  The findings of the report will contribute to the Commission’s work on a new plan for Europe’s sustainable prosperity and competitiveness, and to the development of the new Clean Industrial Deal for competitive industries and quality jobs.

This exploratory opinion requested by the European Parliament’s Committee on International Trade (INTA) focuses on how EU trade and investment policy can be leveraged to achieve certain objectives outlined in the Draghi report by focusing on the interplay between trade, economic growth, digital transformation, environmental sustainability, and social equity.

In the EESC’s view, the Draghi report provides a guide to the policies and decisions that need to be taken for the EU to close the productivity, innovation and competitiveness gaps with the economies of China and the USA – without compromising on internationally recognised environmental and social standards.

Key Points

In the opinion the EESC:

  • believes that trade policy must be closely coordinated with industrial policy and European economic security policy. This requires a common European foreign policy and security strategy;
  • believes that, in view of the current evolving circumstances, strong leadership is required and use of existing trade-defence tools if tariffs are imposed illegally, including retaliatory tariffs, economic diplomacy action, and WTO challenges;
  • proposes the establishment of an EU Investment Fund for Economic Resilience and Sustainable Competitiveness to boost financial capacity, alongside strengthening the European Investment Bank and completing the Banking and Capital Markets Unions;
  • stresses the importance of civil society's participation in trade negotiations through structured consultations to address critical concerns before agreements are finalized.

Additional Information

  • EESC section: External Relations (REX)
  • Opinion number: REX/594
  • Opinion Type: Exploratory
  • Rapporteur: Georgi STOEV, (Employers - GR I/Bulgaria)
  • Date of adoption by section: 10/03/2025
  • Date of adoption in plenary: 26/03/2025

  • Result of the vote in plenary:157 in favour/ 0 against/0 abstentions

Contact

Millie Tsoumani

Press Officer, Tel. +32 0 546 9088, Email: Amalia.Tsoumani@eesc.europa.eu 

Marco Ristori

Policy Officer, Tel.: +32 (0) 2 546 9969, Email: Marco.Ristori@eesc.europa.eu