โ#worldnews #MarioDraghi #Eurozone โ
๐ฅ Italian scenario for the Eurozone
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Today, Mario Draghi will present the long-awaited EU report, which markets see as a prescription for the ailing European economy. As early as last week, SuperMario offered a rough version to EU ambassadors, saying that Europe realizes its inability to respond quickly and adequately to challenges from China and the US.
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Draghi, using his successful experience as head of the EU, as well as former Italian prime minister (not a good experience!) and former advisor to the Pope, suggests that the EU should increase spending by โฌ750-800 billion a year to improve its competitiveness in the global market.
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The current report reminded us again that the EU's economic growth has consistently lagged behind the US, casting doubt on the bloc's ability to digitalize and decarbonize the economy fast enough. Draghi called on the bloc to develop advanced technologies, create a plan to meet its climate goals, and strengthen the defense and security of critical raw materials, calling the task an existential challenge.
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The proposals include plans to expand key sectors such as energy, telecommunications, and finance while maintaining a focus on social inclusion. In terms of financing, the EU is suggested to use only its own borrowing capacity, while joint projects with the US are recommended to be treated as financing.
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But most importantly, Mario again called for the issuance of Eurobonds - most European experts are convinced that the eurozone economy will not survive without collective debt obligations. Germany has a very negative attitude to this idea, and there may be angry comments from German financial figures.
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The reaction to the report is neutral, but after the ECB decision on Thursday, the document may be analyzed again and may affect the euro in the medium term.
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Profits to yโall!