2024-09-11 04:26
Mario Draghi’s recent report on European competitiveness offers a comprehensive roadmap for securing the EU’s economic future, but it overlooks critical social aspects such as worker rights, employment conditions, and the role of public services in fostering socioeconomic growth.
Following the publication of Mario Draghi’s report on the future of European competitiveness, CESI Secretary General Klaus Heeger said:
“Mario Draghi’s recent report on European competitiveness offers timely, necessary and ambitious roadmap for securing the EU’s economic future in an increasingly complex and competitive global environment. As CESI, we appreciate several key elements of the report, particularly its strong focus on the need for substantial investments and a coherent industrial policy to bolster Europe’s global standing.”
“However, we regret that the report leaves several critical social dimensions underexplored. This concerns particularly a reconciliation between efforts to step up competitiveness and a decent protection of employment, working conditions and worker rights, as well as the role of public services as a central actor to support socioeconomic growth and resilience.”
Yes to investments in industrial policy and competitiveness
In matters specifically related to investment and industrial policy, Klaus Heeger said: “The Draghi report makes a compelling case for dramatically increasing investment within the EU, particularly in the green and digital sectors. The proposed annual investment increase of up to €800 billion is essential to driving the EU’s green and digital transitions. This level of investment is crucial for ensuring that Europe remains competitive in a rapidly evolving global economy. The emphasis on strengthening Europe’s industrial base, particularly in strategic sectors such as renewable energy and digital infrastructure, is a positive step toward securing long-term economic resilience.”
He added “The report’s focus on industrial policy is equally commendable. By recognising the need for a strong and coherent industrial strategy, the report highlights the importance of supporting European industries to ensure they can compete globally. The emphasis on cohesion policies to address regional disparities within the EU is another positive aspect, as it acknowledges that for Europe to thrive, growth must be inclusive and benefit all regions, particularly those that have historically lagged behind.”
Workers’ rights must be central
Concerning employment and workers’ rights, Klaus Heeger noted: “It is deeply concerning that the human factor—the rights, conditions, and wellbeing of workers—has not been given the attention it deserves. Economic competitiveness should not be pursued at the expense of workers’ rights or social equity. The report does not sufficiently address the potential social consequences of the proposed economic transformations, particularly in terms of job security, wage levels, and working conditions.”
He added: “We believe that any strategy aimed at boosting Europe’s competitiveness must be rooted in a commitment to protecting and enhancing workers’ rights. This includes ensuring that all workers have access to fair wages, secure employment, safe working conditions and not least re- and upskilling. Wage repression as a tool to promote competitiveness would not only harm workers but also undermine social cohesion and long-term economic stability. Instead, we advocate for a model of competitiveness that is built on innovation, skills development, and fair labour practices. As the report itself states, ‘competitiveness today is less about relative labour costs and more about knowledge and skills embodied in the labour force’.”
The role of public services must be emphasised
In relation to public services as a central actor to support socioeconomic growth and resilience, Klaus Heeger stressed: “Unfortunately, the report falls short of acknowledging that public services are the backbone of any strong economy and are essential for maintaining social cohesion and supporting workers, especially during times of economic transition. Strong public services, including healthcare, education, and social protection, are crucial for ensuring that all citizens can participate fully in the economy and contribute to its growth.”
He added: “Public services also play a vital role in supporting the workforce, particularly in sectors undergoing significant change due to digitalisation or the green transition. The absence of a robust focus on public services in the report suggests a narrow understanding of competitiveness that fails to account for the broader social infrastructure that underpins a healthy and dynamic economy.”