Policy insights
Policy Insights
Policy Insight 137: Europe: Back to Domestic Growth
On 15 December 2024, Mario Draghi spoke at a dinner hosted by CEPR, in association with its 3rd Paris Symposium, about his recently published report on the future of European competitiveness. Domestic growth in Europe has been well below what could have been achieved in recent years, due to factors such as lack of progress in removing barriers within the single market and restrictive fiscal policy. This depressed growth rate has in turn lowered innovation, which then further lowered the growth rate.
Maintaining the current EU social model will be costly and such low growth rates cannot support this. Draghi speaks eloquently about the structural reforms and large scale investments needed within Europe to improve the situation.
