European leaders, including Ursula von der Leyen, recognize the need for faster action on issues like AI regulation, reducing red tape, and streamlining administrative procedures, though delays persist, especially in parliamentary approvals.

Draghi revealed that only about 11% of his 383 recommendations have been fully implemented over the past year, highlighting the slow pace of policy reform.

Mario Draghi, the former ECB President, has issued a stark warning that Europe's economic stagnation and sluggish reforms threaten its global competitiveness, risking falling behind the US and China.

Draghi criticized European member states for their slow response and complacency following a report on European competitiveness released a year earlier, emphasizing that progress remains painfully slow.

He pointed out that global trade tensions, high public debt, and Europe's dependencies further threaten its sovereignty and economic resilience.

While the European Commission has launched initiatives like a common platform for critical raw materials and investments in AI, progress remains inconsistent and insufficient.

Draghi acknowledged some recent advancements, such as the EU-Mercosur trade agreement and increased defense spending, but stressed that reforms need to accelerate to keep pace with global changes.

He called for a temporary pause on EU AI rules for high-risk systems until potential drawbacks are better understood, aligning with industry concerns.

Draghi emphasized the urgency of delivering tangible results within months, rather than years, to revitalize Europe's economic competitiveness.

Despite some progress in defense, including a 150 billion euro fund for rearmament, the EU's overall reform efforts are considered sluggish, hindered by internal disagreements and slow legislative processes.

The warning underscores concerns over Europe's economic resilience amid ongoing global trade tensions and internal policy delays, especially as China recently surpassed Germany in global innovation rankings.

Ursula von der Leyen criticized the European Parliament for slow progress, stressing the importance of urgent reforms and highlighting that reducing red tape could save around nine billion euros annually.