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

TA-10-2025-0285 · P10_TA(2025)0285 · PE770.278

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's resolution on the institutional aspects of the Draghi Report welcomes its findings and calls for institutional reforms to boost EU competitiveness, including more efficient decision-making, completion of the single market, and a European defence union.

Key points

  1. Welcomes the Draghi report and supports its analysis that Europe faces an existential challenge requiring an unprecedented institutional effort, anchored in democratic governance and respect for the treaties.
  2. Calls for a renewed European strategy and improved institutional governance, with a communication strategy to keep citizens informed and involved.
  3. Identifies key policy areas 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 smarter legislation and a more efficient 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 addressing labour and skills shortages.
  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. Reiterates calls for moving to qualified majority voting and the ordinary legislative procedure in key policy fields, and for using passerelle clauses.
  8. Urges the European Council to discuss treaty reform, including convening a convention and using simplified procedures for targeted amendments.
  9. Calls on the Council to consider enhanced cooperation when unanimity blocks decisions, and advises participating states to use the passerelle clause in Article 333 TFEU.
  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 as a tool for swift crisis action but with strong oversight by Parliament and the CJEU, and calls for clarified activation procedures.
  12. Calls for completing the single market, creating a savings and investments union, strengthening the European Securities and Markets Authority, and adding a 'fifth freedom' for research and innovation.

Who is affected

  • EU institutions: Parliament seeks a stronger role in legislation and oversight, and a reorganisation of the Commission.
  • Member States: urged to consider enhanced cooperation and to work towards a European defence union, complementing NATO.
  • Candidate countries: dialogue on institutional changes and gradual integration via the European Political Community.
  • Small and medium-sized enterprises and local communities: 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 annually.
  • 75-80% of global wafer fabrication capacity is in Asia.

Legal basis: Article 48 TEU, Article 122 TFEU, Article 20 TEU, Article 333 TFEU, Article 26 and 114 TFEU, Article 3(3) TEU, Article 63 TFEU, Article 194 TFEU, Article 42(2) TEU, Article 44 TEU