Our reaction to Mario Draghi's report

Today, Mario Draghi unveiled his much-anticipated report on boosting the EU’s competitiveness, a crucial moment as Europe faces increasing regional and global challenges. Although European innovations have historically transformed the world, the continent’s businesses are now feeling the pressure of global competition due to a significant tech gap.

Both the US and China are outpacing Europe. Currently, Europe leads in just 1 out of 8 critical tech areas, as highlighted in our recent publication: The EU’s critical tech gap’’, 30% of unicorns from the EU have left and since 2019 the EU has put in place four times as much regulation as the US. Europe must do whatever it takes to turn this around. 

DIGITALEUROPE’s Director-General Cecilia Bonefeld-Dahl said: 

“Mr Draghi’s report rightly puts digital front and centre in Europe’s quest for competitiveness. And the answer is not more regulation. 

Several striking statistics highlight the urgency: since 2019, the EU has implemented four times as much regulation as the US, and 30% of unicorns from the EU have left . Europe is losing out on critical innovations in sectors like health, defense, and energy that could strengthen citizens’ well-being, prosperity, and security.  

We fully support his call for bold change to break Europe free from the vicious cycle of low innovation, investment and commercialisation . Our latest study shows that Europe is behind in 7 out of 8 critical technologies and the gap is widening quickly. If this continues , Europeans will miss out on well-paid, tech-driven jobs and Europe will lose ground not only in the tech industry itself but also in sectors being transformed by digitalisation, like health, transport, finance, energy, and defense. 

There is a long list of positive ideas in this report: simplifying regulation in areas like AI and privacy, larger and pan-European investment in critical technologies, better commercialization of research, breaking down barriers to scale, and the focus on integrating technology into our strength industries. We hope these ideas become reality and stand ready to support their implementation.” 

Further background: 

• DIGITALEUROPE published a study in partnership with Frontier Economics showing the EU is behind the US and China in 7 out of 8 critical technology areas we studied – from AI to advanced semiconductors. 

• DIGITALEUROPE published a comprehensive publication delving into 10 major single market barriers from connectivity to cumbersome AI compliance: The Single Market Love Story.  

• DIGITALEUROPE has identified in a previous report several areas where the EU can do more and prepare itself for the future. Succeeding will require a dramatic shift from business as usual. 

• DIGITALEUROPE co-signed a letter outlining specific areas where the European Commission must force change in addressing the Single Market. This included clear regulatory recommendations.