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REPORT (2025/2013(INI))

On the institutional aspects of the Report on the future of European Competitiveness (Draghi Report)

A-10-2025-0196

Committee on Constitutional Affairs · Rapporteur: Brando Benifei

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This resolution addresses the institutional aspects of the Draghi report on European competitiveness, calling for reforms to improve EU decision-making, governance, and investment capacity. It urges moving to qualified majority voting in key policy areas, using passerelle clauses and enhanced cooperation, and strengthening Parliament's role, including a right of legislative initiative. It calls for completing the single market, creating a savings and investments union, simplifying the EU budget, and establishing a European defence union. It stresses that institutional and policy reforms must go hand in hand, with democratic oversight and respect for treaty principles.

Committee position. The Committee on Constitutional Affairs proposes a resolution that welcomes the Draghi report and calls for institutional reforms to improve EU decision-making, including QMV, treaty changes, and enhanced cooperation, while strengthening Parliament's role.

Key points

  1. Welcomes the Draghi report and supports its analysis that Europe faces an existential challenge requiring institutional effort, anchored in democratic governance and respect for treaties.
  2. Calls for improving EU institutional governance with a communication strategy to keep citizens informed and support a sense of belonging.
  3. Identifies key domains for reform: completing the single market, creating a savings and investments union, improving EU budget efficiency, maintaining social protection, developing AI and digital transformation, and building energy and defence unions.
  4. Calls for strengthening the EU's capacity to act where it adds value, with simplification not leading to disengagement, and for a leaner institutional set-up including reorganising the Commission.
  5. Supports the Competitiveness Compass but stresses it needs improvement by strengthening the EU's institutional set-up; recommends impact assessments for SMEs and monitoring progress.
  6. Welcomes a competitiveness coordination tool led by the Commission, overseen by Parliament and Council, with independent evaluation and involvement of national parliaments and social partners.
  7. Urges the European Council to discuss treaty revision via a convention or simplified procedure, and recalls Conference on the Future of Europe conclusions.
  8. Calls for extending qualified majority voting and the ordinary legislative procedure to key policy fields using passerelle clauses.
  9. Calls on the Council to consider enhanced cooperation when unanimity blocks decisions, and advises using the passerelle clause in Article 333 TFEU to switch to QMV.
  10. Calls for empowering Parliament with equal footing with the Council, full right of legislative initiative, and modernised right of inquiry.
  11. Considers Article 122 TFEU useful for crises but requires strong oversight by CJEU and Parliament, and calls for clarified activation procedures.
  12. Stresses that enlargement must go hand in hand with strengthening EU governance, and encourages dialogue with candidate countries.

Who is affected

  • EU institutions: Commission, Council, Parliament, and European Council, which are called to implement reforms in decision-making and governance.
  • Member states, which are encouraged to use enhanced cooperation and QMV, and to work towards a European defence union.
  • Candidate countries for EU enlargement, which would be affected by institutional changes and dialogue on integration.
  • Small and medium-sized enterprises and local communities, which would benefit from simplified EU budget access and reduced administrative burdens.

Figures and deadlines

  • GDP gap between EU and US increased from over 15% in 2002 to approximately 30% in 2023.
  • Investment increase of around 5% of EU GDP, amounting to EUR 750-800 billion additional annual investment.
  • 75-80% of global wafer fabrication capacity is in Asia.

Legal basis: Article 48 TEU, Article 122 TFEU, and other treaty provisions.