Mario Draghi: «We Should Also Thank Mr. Trump»
Europe is undergoing a turning point through increased spending, most notably in Germany. US President Donald Trump partially deserves to be thanked for this development, according to Maro Draghi former head of the European Central Bank.
Europe is facing urgency as the historic security commitment from the US is being challenged under President Donald Trump. According to Mario Draghi, ex-president of the European Central Bank, many of the issues the region is now addressing have long been present.
«So the difference is we can't procrastinate. That's the difference between 10 years ago and so the time to find consensus has become dramatically short,» Draghi said during the HSBC Global Investment Summit 2025 attended by finews.asia. «And for this, we should also thank Mr. Trump.»
2024 Report
Draghi referenced the so-called «Draghi report» published in 2024 that addressed the issue of European competitiveness. It urged the European Union to foster more investments to increase regional productivity, increase coordinated industrial policy and facilitate risky investments. The report also supported joint borrowing.
«Europe had lost what I used to call the paradigm of cheap gas, easy exports to China and […] the defense shield provided by the United States. All the things that are in the report should have been done, not now but 10 years ago,» explained Draghi, who is also the former prime minister of Italy.
«What the change in the US administration has as one of the consequences is basically to tell us you have run out of time. So either, for example, you proceed to defend yourself or you are defenseless.»
Germany: «Game Changer»
In a landmark development, Germany has been the first mover with historic reforms that include changes to a debt brake that allow greater spending alongside a 500 billion euro ($540 billion) infrastructure and climate fund. According to Draghi, this new Germany is a «game changer» but he also highlights a major issue for other countries.
«This Germany is very different from the old Germany. The Germany of [former chancellors] Adenauer, Erhard and others didn't have any problem with spending but then they learned so much about savings that they were unable to spend. So they had to change rules,» he commented.
«There is one big risk. The way this is being managed by the European Commission […] there is some state aid. State aid means that, basically, the countries that have space in their budget can use it if the commission authorizes and countries that don't have it cannot. So if this is not properly managed, what happens is that Germany will re-arm itself but the others would not.»
