Draghi report sparks EU identity crisis amid widening US tech and productivity gap

The EU faces a critical crossroads as it confronts falling productivity, regulatory complexity, and rising global competition head-on

The facade of European Parliament building in Leopold Square in Brussels. Europe is entering an era for the first time in recent history where economic growth can no longer rely on a rising population.

The European Union is in the midst of an identity crisis. The landmark Draghi report, published last year by the former European Central Bank president, has sent shockwaves through the union, prompting a complete overhaul of its regulatory, innovation and competitiveness strategies in fear that the bloc will fall irrevocably behind its fellow superpowers.

The eye-opening report, published by Mario Draghi late last year, warned Europe that it was asleep at the wheel, thus missing out on the digital revolution led by the internet and its subsequent productive gains.