Draghi Warns Europe Faces Stagnation Without Accelerated AI Investment

Leuven, Belgium – former Italian Prime Minister Enrico Draghi Issued a Stark Warning on Friday, Asserting that Europe Risks Economic Stagnation If It Fails To Rapidly Close The Artificial Intelligence Gap With The United States And China. Draghi Delivered His Remarks During A Speech At The Katholieke Universiteit Leuven In Belgium.

The Growing AI Divide

Draghi Emphasized That The Current Pace Of Ai Growth In Europe Is Insufficient To Compete With Global Leaders. He Highlighted The Significant Investments Being Made By both The U.S. And China, Primarily Driven By Private Sector Funding, As A Major Challenge For European Competitiveness. He Stated That Europe Must

What are the main reasons Mario Draghi believes Europe must assert more geopolitical power?

Draghi Urges Europe to Assert power or Face Fragmentation

Mario Draghi, the former President of the European Central Bank (ECB), has issued a stark warning: Europe must dramatically increase its geopolitical power or risk fracturing under the weight of internal divisions and external pressures. His recent pronouncements, delivered at a series of high-profile conferences in late 2025 and early 2026, underscore a growing anxiety about the continent’s strategic autonomy and its ability to navigate an increasingly complex global landscape. This isn’t simply about economic policy; it’s a call for a fundamental shift in how Europe views its role on the world stage.

The Core of Draghi’s Argument: A Looming Crisis of Sovereignty

draghi’s central argument revolves around the idea that Europe’s current approach – a reliance on soft power, multilateral institutions, and economic interdependence – is no longer sufficient to safeguard its interests. He points to several converging factors:

* Rising geopolitical Competition: The assertive rise of China, a more unpredictable Russia, and a shifting US foreign policy landscape all contribute to a more contested international order.

* Internal Disunity: Persistent disagreements among member states on issues like migration, defense spending, and fiscal policy weaken Europe’s collective voice and ability to act decisively. The ongoing debates surrounding the future of the Eurozone, while stabilized, still represent a potential fracture point.

* Economic Vulnerabilities: Dependence on external suppliers for critical resources – energy being the most prominent example, as highlighted by the 2022 energy crisis – leaves Europe susceptible to coercion and disruption.

* Technological Dependence: A lag in key technological areas, such as artificial intelligence and semiconductors, threatens europe’s long-term competitiveness and strategic independence.

Draghi contends that without a concerted effort to address these vulnerabilities, Europe risks becoming a geopolitical follower rather than a leader, ultimately leading to fragmentation along national lines. This fragmentation wouldn’t necessarily manifest as a formal dissolution of the European Union, but rather as a weakening of its institutions and a return to more nationalistic policies.

Key Areas for Action: Building European Power

Draghi’s call to action isn’t vague.He identifies several specific areas where Europe must demonstrate greater ambition and resolve:

1. Defense and Security:

* Increased Defense Spending: he advocates for a important increase in defense budgets across member states, moving towards the NATO target of 2% of GDP. This isn’t simply about spending more money, but about investing in modern capabilities and fostering greater interoperability between European armed forces.

* A Truly European army: While acknowledging the complexities, Draghi supports the development of a more integrated European defense capability, possibly including a standing European army, to complement – not replace – national forces. The recent progress on the European Defence Fund is a step in the right direction, but needs acceleration.

* Strengthening Cybersecurity: Protecting critical infrastructure from cyberattacks is paramount. Europe needs to invest heavily in cybersecurity capabilities and develop a unified approach to cyber defense.

2. Economic Resilience:

* Diversifying Supply Chains: reducing dependence on single suppliers for critical resources is crucial. this requires investing in domestic production,forging partnerships with reliable allies,and building strategic reserves.

* Completing the Single Market: Removing remaining barriers to trade and investment within the EU will boost economic growth and competitiveness. Focusing on the digital single market is particularly significant.

* Industrial Policy: Draghi supports a more proactive industrial policy aimed at fostering innovation and supporting strategic industries, such as renewable energy, semiconductors, and biotechnology. This includes providing state aid where necessary,within the framework of EU competition rules.

3. Technological Sovereignty:

* Investing in R&D: Europe needs to considerably increase its investment in research and development, particularly in key technologies.

* Attracting Talent: Creating a more attractive habitat for researchers and entrepreneurs is essential. This includes simplifying visa procedures and providing funding for startups.

* Regulating Big Tech: Europe needs to develop a robust regulatory framework for big tech companies to ensure fair competition and protect data privacy. The Digital Markets Act and Digital Services Act are critically important steps,but ongoing vigilance is required.

4. Foreign Policy Coherence:

* A Unified Voice: Europe needs to speak with a single voice on foreign policy issues, rather than allowing national interests to undermine its collective influence.

* Strengthening Diplomatic Capacity: Investing in diplomatic resources and expertise is essential for effectively engaging with the world.

* Strategic Partnerships: Forging stronger partnerships with like-minded countries,such as the United States,Japan,and India,will amplify europe’s influence.

Past precedents and Lessons Learned

Draghi’s warnings echo concerns raised by previous european leaders. The failure of the European Defence Community in the 1950s, for example, demonstrated the difficulty of overcoming national sovereignty concerns to achieve greater integration. However, the creation of the Eurozone, despite its challenges, showed that ambitious integration is possible when there is sufficient political will.

The 2008 financial crisis and the subsequent Eurozone debt crisis highlighted the dangers of economic fragmentation and the need for greater fiscal coordination. The response to the COVID-19 pandemic, with the creation of the NextGenerationEU recovery fund, demonstrated Europe’s capacity for collective action in times of crisis. However, Draghi argues that these responses were largely reactive, and that europe needs to adopt a