One reflection on the future of Europe through Mario Draghi’s guidelines and their application to the Portuguese context. This was the proposal of the Polytechnic of Porto (IPP), in partnership with PÚBLICO and with EY Portugal, for the conference “Draghi Report: a national reading in the OE 2025 phase”. With the current scenario of political and economic uncertainties, the Draghi Report is seen as “a fundamental piece in shaping the future of Europe and Portugal”, as highlighted by Paulo Pereira, president of the higher education institution, in anticipation of the conference. The importance of promoting broad public discussion, so that the importance of certain measures in social life becomes clear, was one of the main purposes of the event.
Innovation, decarbonization, cooperation
The urgent need for greater coordination between academia and industry, in order to increase the transfer of innovation to the economy, was highlighted by Paulo Pereira, in his introduction. According to Draghi, Europe faces critical challenges, such as dependence on raw materials and the growing competitiveness of countries like China in the technology sector.
The report suggests a “doubling of investments in research”, cited Pereira, and the creation of large-scale infrastructures to address this gap in innovation. He also inevitably mentioned decarbonization – one of Draghi’s main focuses – as a crucial opportunity to balance sustainability and industrial competitiveness. Especially given the “high energy costs in the European Union”, which are “five times higher than in the USA”, the decarbonization process has a direct impact on the competitiveness of emerging technologies. such as artificial intelligence, for example, is another of the bets suggested in the report and highlighted by Paulo Pereira.
Regarding the general lines of the report, Paulo Ferraz, director of IPP, and Hermano Rodrigues, from EY Portugal, left some notes on what they consider a diagnosis of Europe’s economic situation. Paulo Ferraz began by highlighting that “one of the issues very present in the report, linked to competitiveness, has to do with the slowdown in economic growth in Europe”. Given comparative data, the sharp growth of China and the decline of Europe and the United States in the last 20 years are evident. The importance of productivity, which represents “around 70% of GDP divergence per capita between the United States and Europe”, was another of the points he highlighted.
Regarding the challenges Europe faces, Hermano Rodrigues named innovation and energy costs as two of the main ones. “The price of energy in Europe is two to three times that of the United States and, in the case of gas, four to five times higher,” he says. This disparity has a direct impact on the competitiveness of companies, which brings the decarbonization of the economy back into the conversation as a response to this disadvantage, through the use of clean energy.
O “gap of skills” was another of the topics on the table, on which the principal of EY suggested that “Europe has not done sufficient and consistent work to align these skills with market needs”. For this reason, the alignment between higher education institutions and the business sector was also highlighted as essential – and, in this sense, on the sidelines of the conference a cooperation protocol was signed between IPP and EY with a view to strengthening relations between knowledge and industry.
The issue of financing, the need to rethink European governance, prioritizing competitiveness and efficiency in investments, was cited as a motto for the debate that followed.
European guidelines in the national strategy
The context of the 2025 State Budget was highlighted as a crucial moment to align national strategies with the recommendations of Draghi’s report. Moderated by journalist Manuel Carvalho, from PÚBLICO, the debate panel brought together well-known names in the areas of economics and finance. Nazaré da Costa Cabral began by confessing a certain “disenchantment” with the scenario being analyzed. The conversation with Isabel Ucha, João Neves, Luís Miguel Ribeiro and Silva Peneda ended up touching on several points that reflect the suitability of Draghi’s guidelines for the Portuguese context.
The concentration of emerging industries in the most developed countries in Europe worsens economic inequality in relation to countries like Portugal, which runs the risk of certain marginalization. This disparity is seen as a strategic challenge, especially when combined with political divergences that hinder a unified and effective response by European Union members.
Financing and taxation were therefore widely discussed. The importance of better channeling European savings into productive investments was highlighted. The lack of robust funds, especially compared to the United States, has been highlighted as a structural weakness, which prevents Europe from adequately financing sectors such as innovation.
In conclusion, speakers highlighted the urgent need for institutional reforms and strong leadership to guide Europe through economic and technological challenges. Without adequate coordination between fiscal and monetary policies and a concerted effort to increase investment, Europe risks falling further behind its global competitors such as the United States and China.
PÚBLICO was a partner in media of this conference, promoted by the Polytechnic of Porto and EY Portugal. The event is available to view on publico.pt/aovivo.
