TL:DR – Draghi Calls for European Federation to Counter Global Power Challenges
• Former Italian Prime Minister Mario Draghi warned Europe risks being “subordinated, divided, and deindustrialised.”
• Draghi advocated for Europe to transition from confederation to federation.
• He highlighted a decline in the global order following China’s WTO membership.
• Draghi mentioned the threat of US tariffs and political fragmentation in Europe.
• He introduced the concept of “pragmatic federalism” to enhance Europe’s global position.
• Successful trade agreements with India and Latin America were noted as evidence of Europe’s potential.
EU must become a ‘genuine federation’ to avoid deindustrialisation and decline, Draghi says
The President of the ECB Mario Draghi advocates for EU federalism at KU Leuven University Speech, suggesting this is a ‘do or die’ moment for the EU.
Former Italian Prime Minister and President of the European Central Bank Mario Draghi emphasised the need for Europe to transform into a “genuine federation” to avoid becoming “subordinated, divided, and deindustrialised.” His remarks were made during a speech at KU Leuven University, delivered upon receiving an honorary degree.
Draghi argued that current geopolitical dynamics necessitate a shift from a confederation to a federation structure in Europe. He warned that the global order is “now defunct” and identified the entry of China into the World Trade Organization as a pivotal moment leading to political backlash and weakened trade regulations.
Concerns Over U.S. Influence
Draghi detailed the implications of U.S. tariffs on Europe, highlighting a shift in American interests towards benefiting from European political fragmentation. He also pointed out China’s control over critical global supply chains, warning that the country could exploit its leverage against European interests.
EU Proposal Aims to Streamline European Start-Ups
The former Prime Minister criticised Europe’s current fragmented state in defence, industrial policy, and foreign affairs, arguing that without a unified approach, the EU risks being “treated as a loose assembly of middle-sized states.”
Proposal for Pragmatic Federalism
Draghi proposed a “pragmatic federalism” that would allow member states to opt in while rejecting those who undermine common goals. He underscored that the euro serves as a successful example of how a gradual approach could lead to collective strength.
The problem with Europe as a whole is, it has far too many American colonies, who are so weak that they rely on the American imperialism that dominates them. If the States don’t unify, they won’t survive much longer.
He concluded by urging Europe to decide whether it wants to remain a large market subject to external priorities or to take necessary steps to assert itself as a unified global power, warning that a Europe unable to defend its own interests risks losing its values.