Europe does not need more recommendations to enhance competitiveness
Mario Draghi is right to be dissatisfied. The newly launched Rhine Group, bringing together European business and policy leaders as well as experts to push for faster action on competitiveness, starts from an uncomfortable truth: Europe is not delivering.
But the problem is not a lack of ideas. Over the years, think tanks, businesses, high-level groups and individuals have developed far-reaching proposals. Draghi himself has produced a compelling diagnosis and extensive recommendations. Enrico Letta has done likewise. There is disagreement on individual measures, but not about the direction of travel.
However, Europe has a delivery gap between the scale, scope, depth and speed of action required and what its political system can implement.
Another group or report will not close it. The critical question is political feasibility. We know what to do but reforms are not implemented because national governments are unwilling or unable to act collectively.
The Draghi report could have had greater impact if key national leaders had been brought together to jointly own the reform agenda and agree an implementation plan. This should inform the Rhine Group’s approach.
Prioritisation is crucial: identifying a limited number of high-impact reforms, building a coalition of willing governments, determining necessary political bargains and establishing timelines and accountability.
Hopefully, this is where Draghi will go next: from identifying what Europe must do to constructing a path for how it can actually happen.
Otherwise, the Rhine Group risks becoming another lauded forum that is widely discussed but ultimately fails to move the dial.
Fabian Zuleeg is Chief Executive and Chief Economist at the European Policy Centre.
The support the European Policy Centre receives for its ongoing operations, or specifically for its publications, does not constitute an endorsement of their contents, which reflect the views of the authors only. Supporters and partners cannot be held responsible for any use that may be made of the information contained therein.
