26 March 2025 | Euro

Mario Draghi emphasizes importance of careful defense spending increase in Europe

Mario Draghi emphasizes importance of careful defense spending increase in Europe

Former head of the European Central Bank Mario Draghi views the German government's decision to increase defense spending as a ‘game changer.’ However, he warns that there are certain risks associated with the implementation of this plan.

The former Italian prime minister is concerned about how the European Commission handles the policy change. According to him, the process must be carried out with caution. He also reiterated the need to improve Europe's competitiveness in a rapidly changing world.

Last year, Mario Draghi prepared a report for the European Commission containing a detailed plan aimed at stabilization of the bloc's economy. It included recommendations for creating a capital markets union, repatriating Europe's huge savings surplus, and investing in innovation and growth. He also recently stated the need to integrate Europe's armed forces and share spending to compete more effectively with other countries.

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