EU Implementation of Draghi Competitiveness Plan Lags Behind Rhetoric

The European Union has implemented only about 16% of the reforms proposed in Mario Draghi's plan to combat economic decline and increase competitiveness. According to an analysis by the Banco de España based on data from the Draghi Observatory, fewer than 30 of the 176 proposals have been fully realized. While some measures are partially implemented, more than half of the recommendations remain stalled.

The analysis indicates that the lack of progress is not primarily due to a shortage of funds. Over half of the sector recommendations do not require new public spending, and 92% of proposed regulatory simplifications require no budgetary expenditure. Instead, the delay is attributed to administrative difficulties and the challenge of reaching consensus on normative changes among national governments.

Progress has been uneven across different sectors. Defense has seen the most significant advancement, with implementation rising from 22% to 53% between September 2025 and July 2026. This acceleration is attributed to geopolitical urgency caused by conflicts in Ukraine and the Middle East. In contrast, other areas remain stuck in negotiations as member states protect their spending priorities and policymaking authority.

Mario Draghi has expressed increasing frustration with the slow pace of action. To push the agenda forward, the former Italian prime minister co-founded the Rhine Group with Stripe chief Patrick Collison to move Europe from diagnosis to action.