Draghi: additionally use duties in opposition to unfair competitors | EUROtoday

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Tariffs might be one of many responses to unfair competitors in worldwide commerce. The former prime minister stated it Mario Draghi talking in Spain. «The first European response to altering world commerce guidelines must be to attempt to restore as a lot injury as potential to the multilateral buying and selling order, encouraging all keen companions to recommit to rules-based commerce. The second response must be to encourage international direct funding, in order that manufacturing jobs stay in Europe.” Mario Draghi said this while speaking at the Monastery of San Jeronimo de Yuste in Extremadura, where he received from the king Felipe VI of Spain il Charles V European Prize. «The third response should be to use subsidies and tariffs to offset the unfair advantages created by industrial policies and real exchange rate devaluations abroad. But if we take this path, it must be within the framework of an overall pragmatic, cautious and coherent approach,” he added.

“The EU must grow faster and better”

“The EU will have to grow faster and better. And the main way to achieve faster growth is to increase our productivity,” the former prime minister and former president of the European Central Bank underlined in his acceptance speech. “We must also face new needs: adapt to rapid technological changes, increase defense capacity and achieve the green transition,” Draghi reported.

“Increasing internal demand within the EU and reducing dependencies”

“The paradigm that brought us prosperity in the past was designed for a world of geopolitical stability, which meant that national security considerations had a limited role in economic decisions. But geopolitical relations are now deteriorating. This shift requires Europe to take a fundamentally different approach to its industrial capacity in strategic sectors such as defence, space, critical minerals and parts of pharmaceuticals. And it also requires reducing our dependence on countries we can no longer trust.” Thus, in another passage, Mario Draghi clarified his recipe for the relaunch of the European economy in his speech on the occasion of the Charles V award.

Former President of the European Central Bank (ECB) and former Italian Prime Minister Mario Draghi and King of Spain Felipe VI pose for a family photo together with Spanish Foreign Minister Jose Manuel Albares, the President of the Extremadura Regional Government Maria Guardiola, Spanish Economy Minister Carlos Cuerpo and European Union High Representative for Foreign Affairs and Security Policy Josep Borrell during an awards ceremony at the Yuste Monastery in Cuacos de Yuste, Caceres province, Spain , June 14, 2024. EPA/BALLESTEROS

“The first thing we need, therefore, is a common assessment of the geopolitical risks we face, shared by Member States and able to guide our response. Then, we will have to develop a real “foreign economic policy” that coordinates preferential trade agreements and direct investments with resource-rich countries, the building of stocks in selected critical areas and the creation of industrial partnerships to guarantee the supply chain of key technologies,” defined Draghi. “For businesses to increase investment and production capacity, Europe will need to not only increase the level of demand through higher spending, but also ensure that this is concentrated within our borders and is aggregated at a European level. The most efficient way to generate this demand would be to increase common European spending. But in the absence of such a centralized approach, we can achieve a lot by more closely coordinating public procurement policies and applying more explicit local content requirements for products and components produced in the EU,” she underlined.

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“EU challenges require unprecedented cooperation between the 27”

“Maintaining high levels of social protection and redistribution is non-negotiable. The fight against social exclusion will be crucial not only to preserve our Union's values ​​of social equity, but also to ensure that our journey towards a more technological society is successful. These decisions require a still unprecedented degree of cooperation and coordination between the Member States of the European Union,” added Draghi. Decisions agreed on a cooperative and coordinated foundation “will also be important from a political and financial perspective. And they may also require a still unprecedented degree of cooperation and coordination between European Union member states. Today this step seems discouraging. However, I am confident that we have the determination, responsibility and solidarity to face it, to defend our jobs, our climate, our values ​​of equity and social inclusion and our independence,” concluded the previous prime minister.