Draghi report on EU competitiveness: education and research are key pillars
30 September 2024
The report, which Ursula von der Leyen announced in her annual State of the Union 2023 speech, has numerous overlaps with the political guidelines that von der Leyen presented to Parliament before her re-election as Commission President for the next five years (link).
Elements of the report and key messages
The two-part document “The future of European competitiveness” comprises a 65-page first part with a description of the initial situation and the core elements of the strategy, as well as a 328-page Part B with an in-depth analysis and recommendations (link to the Commission website).
To increase the EU’s productivity and competitiveness in the face of radical transformation processes, Draghi’s report proposes a new industrial strategy for Europe based on three areas of action to promote sustainable growth:
- concerted efforts to close the innovation gap
- a common plan for decarbonisation and competitiveness, and
- the development of an independent defence industry.
As a key driver for EU competitiveness, the report lists ten sectoral1 and five horizontal policy areas relating to (i) accelerating innovation, (ii) closing the skills gap, (iii) sustainable investment, (iv) rebalancing competition and (v) strengthening governance.
Measures in the field of research
As part of the horizontal policy area “Accelerating Innovation”, the report argues in favour of placing research and innovation at the centre of the EU’s strategic priorities.
According to Draghi, in order for the EU to become competitive again, an improved financial framework for breakthrough innovation, start-ups and scale-ups and the development of a simplified, more accessible and more effective 10th EU Research and Innovation Framework Programme is required. This should be achieved by doubling the programme budget compared to Horizon Europe, including for the ERC, which the report suggests to extend to institutions in order to promote excellence and research in institutions, also by utilising the European University Alliances. Moreover, the programme should be reformed by reducing the number of funding priorities, increasing the budget share for ground-breaking innovations, transforming the EIC into an ARPA-like agency (modelled on the US Innovation Agency, which funds high-risk/high-reward projects), increasing the efficiency of application procedures and introducing excellence as the sole funding criterion.
In view of a “fragmented EU research landscape”, the report calls for a harmonised strategy and coordination between the member states and better management of public research and innovation spending, with the aim of establishing a research and innovation union. This is to be implemented through a European research and action plan, supplemented by national action plans, whose support by the EU is to be made dependent on the fulfilment of commitments to achieve at least 3% of GDP in R&D expenditure. The report also envisages the creation of “EU Chairs” for top researchers/professors, who will be formally employed as European civil servants and will be able to actively shape institutions and move freely within European universities. Furthermore, the mobility of researchers is to be facilitated by extending Erasmus+ to researchers by funding teaching or research stays at higher education institutions and R&T organisations in another country.
Measures in the education sector
According to Draghi, without an ambitious but pragmatic skills policy, the EU will not be able to achieve the objectives discussed effectively and adequately. The serious and consequential skills gaps that Europe currently faces can only be overcome by increasing the budget, optimising the allocation of resources and increasing and improving cooperation between Member States in the field of education and training. With reference to the currently low number of young people participating in mobility (15%), a fivefold increase in the Erasmus+ budget is required in order to reach all young people in the EU in the coming funding period (2028-2034).
On the way to a Union of Skills, in the sense of a true single market for skills as a long-term vision, the report presents twelve short (ST) and medium-term (MT) measures to close the skills gap. These include the evidence-based design of skills policy (ST), the adaptation of curricula (ST/MT), the improvement and harmonisation of qualification certificates (ST/MT) and the redesign of qualification measures (ST/MT). Other proposals include adult education (ST), the reform of vocational education and training (VET) (ST/MT), programmes to support disadvantaged children (ST/MT) and improvements for teachers (MT). Increasing employment (ST/MT) and attracting more highly skilled labour from outside Europe (ST/MT) are also recommended; the latter e.g. through a new fund for the acquisition of technical skills, simplified and accelerated visa and immigration procedures, merit-based EU scholarships for students, graduates and doctoral candidates, especially in STEM fields, as well as internships for students and contracts for graduates.
What happens next
The core statements of the “Draghi Report” have been incorporated into the political guidelines presented by Ursula von der Leyen in mid-July and are expected to play a major role in EU policy across all departments in the coming months and years. It can be assumed that Draghi’s recommendations, which have already been incorporated into the mission letters to the commissioners-designate (link), will also play a special role in the hearing in Parliament and in von der Leyen’s State of the Union address and will be taken up again and again in the coming years and also implemented in part.
