There is a consensus in the European Parliament on the need for investment to support EU industry. The amount and origin of these funds are less clear. Following the presentation of Mario Draghi’s report on Monday 9 September, the MEPs each put their finger on the measures they prefer. While some were quick to jump on the investment bandwagon, others avoided the subject.
On the right of the Chamber, MEPs are insisting on the importance of exploiting private capital first and foremost. What’s more, the issue of funding is not at the heart of the industry’s concerns, according to the right, which believes that it is above all the EU’s regulatory and administrative burden that is driving business away.
As a result, Mario Draghi’s idea of a common debt will hardly convince the EPP Group’s MEPs. “Joint debt issuance is neither politically feasible nor is it advisable. We have seen with the recovery fund that simply throwing money at a problem does not necessarily solve it”, warns Markus Ferber (EPP, German). He fears that the political discussions will get bogged down in disagreements over funding and come to nothing.
His colleague Andreas Schwab (EPP, German) also stresses the importance of reporting obligations for companies.
On the other hand, Mario Draghi’s call for massive investment is finding a certain echo in the centre and on the left. S&D welcomes the idea of a common loan. “The Draghi report is a point of support in that it calls for investment in the technologies of the future and the zero-carbon transition, partly financed by European borrowing. This is going to be very useful for us, because although Ursula von der Leyen has shown herself open to moving in this direction in the past, it is not in the majority of her political group’s programme”, reacted Jean-Marc Germain (S&D, French).
The Renew Europe group agrees on the need for investment, but less so on the volume of public funding required.
Belgium’s Yvan Verougstraete (Renew Europe) claims that the private sector will need to be supported by a massive injection of public funds: “The EU could achieve this through, among other things, joint borrowing and its own tax system”. In his view, a common debt “would not impoverish our economic credibility”.
However, some MEPs of his own group, such as Germany’s Svenja Hahn, are placing particular emphasis on mobilising private capital.
On the Greens/EFA side, the joint debt is more broadly accepted: “The report sends a clear message to Germany: the dogmatic maintenance of the debt brake by the CDU and FDP is the biggest brake on growth in the German economy”, said Michael Bloss (Greens/EFA, German).
Outside the European Parliament, a number of organisations have also welcomed Mario Draghi’s message on investment and are calling on decision-makers to follow his recommendations.
“Draghi’s focus on a €750 billion-€800 billion investment boost should be a wake-up call for all European leaders who talk austerity and fiscal conservatism”, said Linda Kalcher, Executive Director of the Strategic Perspectives think tank. (Original version in French by Léa Marchal)