What changed

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

P10_TA(2025)0285

on the institutionalInstitutional aspects of the Report on the future of European Competitiveness (Draghi Report)

(2025/2013(INI))

Committee on Constitutional Affairs

PE770.278

European Parliament resolution of 25 November 2025 on the institutional aspects of the Report on the future of European Competitiveness (Draghi Report) (2025/2013(INI))

The European Parliament,

24. Stresses that the strengthening of AI governance must be based on transparency, the protection of fundamental rights and the safeguarding of the public interest, in line with the EU’s rules-based approach; calls on the Commission to enhance the role of the existing European AI Office; welcomes the AI continent action plan for the development of an EU ‘AI model’, based on cooperation between public and private actors;

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25. Instructs its President to forward this resolution to the Council, the Commission, the European Council and the governments and parliaments of the Member States.

EXPLANATORY STATEMENT

The Draghi report has rapidly become a central point of reference for the debate on Europe’s future. Many of its recommendations are already inspiring initiatives at both Union and national level, which makes it even more urgent to analyse it carefully and identify how to translate its vision into a coherent political and institutional strategy. The core message is clear: Europe is confronted with an existential challenge. In a rapidly changing geopolitical and economic context, marked by global competition, technological disruption and mounting security risks, the Union must equip itself with the means to remain competitive, foster innovation, achieve fair decarbonisation, and guarantee security, democracy and peace for its citizens. This requires not only targeted policies, but also a deep reform of the Union’s institutional setup.

This is precisely the purpose of this own-initiative report in the Committee on Constitutional Affairs (AFCO). The Draghi report is not just a call for sectoral reforms in innovation, decarbonisation or defence; it is an illustration of why Europe needs a stronger and more effective institutional framework. It is therefore crucial to address these institutional aspects, which are fundamental if the Union is to translate Draghi’s recommendations into real change. Strategic policy reforms and institutional reforms must be pursued hand in hand, as two sides of the same coin.

The first institutional requirement identified in this INI report is to strengthen the Union’s ability to take timely and effective decisions. The Draghi analysis highlights the need to generalise the use of qualified majority voting in the Council, extending it to key policy areas where blockages have too often paralysed progress. At the same time, the passerelle clauses already provided for in the Treaties should be used more systematically, and enhanced cooperation should be pursued where unanimity cannot be achieved. In all these avenues, it is essential that the European Parliament maintains its central role. This INI report therefore calls for reinforcing Parliament’s legislative prerogatives, placing it on an equal footing with the Council, including the right of legislative initiative and a stronger right of inquiry. This is not just an institutional preference but a democratic necessity: reforms to increase the Union’s capacity to act must go hand in hand with reforms to enhance its legitimacy.

The work of AFCO is also to situate the Draghi report within the broader debate on Europe’s constitutional development. The Letta report on the single market, for example, complements Draghi’s vision by highlighting the need to overcome fragmentation and complete the Capital Markets Union. By connecting these reports, the European Parliament can provide coherence and ensure that the future of Europe is not left to piecemeal implementation but is guided by a strategic and institutional roadmap.

Institutional reforms must also be linked with financial capacity. The Draghi report rightly calls for mobilising both public and private investment on an unprecedented scale. The experience of NextGenerationEU has demonstrated that common European debt instruments can provide the necessary resources to deliver on Union-wide priorities while embodying solidarity. In a context where national budgetary space is narrow and public investment cannot be sacrificed, the issuance of European debt must be considered as a structural tool to finance innovation, green transition, infrastructure, security and defence. This INI report stresses that AFCO should lead the reflection on how institutional reforms can create the legal and political space for such financial instruments.

The key policy areas addressed by Draghi also demonstrate why governance reform is indispensable. Completing the single market remains a priority: persistent barriers in areas such as energy, capital, labour mobility and digitalisation undermine competitiveness, cohesion and fairness. A European approach to artificial intelligence and digital transformation, grounded in transparency, fundamental rights and public interest, requires strong governance structures. The energy union must be deepened, with decarbonisation at its heart. Security and defence demand a comparable ambition: Europe must move towards a genuine defence union, pooling industrial capabilities and jointly planning and procuring equipment in order to guarantee strategic autonomy and collective security. None of these objectives can be met without institutional reforms that empower the Union to act decisively.

Simplification of EU rules is also essential to ensure efficiency but should not lead to disengagement from areas needing EU-level action. The Draghi report’s call to reduce regulatory burden must be implemented in a way that preserves high standards for citizens and businesses. Competitiveness must be pursued in parallel with the social dimension. Growth and investment must go hand in hand with the strengthening of the European Pillar of Social Rights. The INI report makes clear that embedding social progress as a core element of EU governance is indispensable if reforms are to be sustainable and legitimate.

The AFCO committee, as the Parliament’s place for constitutional matters, is uniquely placed to ensure that the Draghi report is not read only as a list of policy recommendations, but also as a case study of why Europe needs institutional change. The challenges of innovation, decarbonisation and defence cannot be met without a Union that acts decisively, effectively and democratically. This own-initiative report of the European Parliament sends a strong message: policy ambitions and governance reforms are inseparable, and only by addressing them together can the Union live up to the expectations of its citizens and its role in the world.

The task ahead is ambitious: to equip the Union with the institutional framework and strategic policies that will allow it to thrive in a complex world. But the stakes are even higher: ensuring that the European project continues to deliver prosperity, rights and security to its citizens. If Europe is to survive and prosper, it must change. It must become capable of acting as a single polity, speaking with one voice, deciding with efficiency and legitimacy, and investing with solidarity. This is the guiding principle of the Draghi report, and it is the rationale of this INI report.