European Union rushes to implement economic reform after Trump victory

“Draghi made a clear call for a European renaissance. Europe needs fundamental modernization to remain competitive,” Scholz said. But with Germany mired in political turmoil, divergent national interests and disagreements over how to tackle challenges, there are no guarantees that the EU will be able to move.

Draghi had already warned of the prospect of a “slow agony” of the bloc’s decline.

“Need for decisive action”

The highlight of Draghi’s report is the proposal for Europe to invest up to 800 billion euros (R$4.9 trillion) more per year to improve economic production and avoid falling further behind the US.

Controversially, Draghi called for a change in EU competition policy to encourage big spending.

In a formal statement, the leaders emphasized “the urgent need for decisive action” and supported Draghi’s proposals, although they remained vague on some points. They agreed to “mobilize public and private financing”, adding that they would explore “all instruments to meet the goals”, without, however, providing further details.