In the Draghi report, more funds are requested for EU Defense

Brussels (ANSA) – The competitiveness report that Mario Draghi is set to present in the coming weeks will also include a dedicated chapter on common defense. In the report, according to Politico, the former ECB president emphasizes that “the European defense industry should not have restrictions in accessing EU funding and mergers should be allowed to help scale national champions”.

Draghi’s call responds to a need that both the EU Commission and several member states – primarily France – have considered a priority for months: revolutionizing the European defense system both from a geopolitical perspective and regarding the presence of European companies in the global market.

“With the return of war in the immediate vicinity of the EU, the emergence of new types of hybrid threats, and a potential shift in the geographical focus and defense needs of the United States, the EU will have to take on increasing responsibility for its own defense and security,” the report reads.

To bring about that “radical change” that Draghi generally calls for in the entire competitiveness dossier, the former Italian prime minister’s report thus suggests freeing up common funds by modifying the EIB’s lending policies, the EU’s sustainable finance frameworks, and the environmental, social, and governance rules, thus allowing for more investments in defense.

The issue, along with Draghi’s entire report, will be on the table at the meeting between the former Eurotower head and the presidents of the Europarliament groups, scheduled for Wednesday. It will be the first meeting between Draghi and his political interlocutors on the report after its completion (September 2).