The European Union’s economic state is critical.

Is the European Union (EU) facing a slow decline? The former President of the European Central Bank (ECB), Mario Draghi, sees it so. On Monday, 9 September, the long-standing European monetary watchdog presented its report on the future of European competitiveness (in English only) to the President of the European Commission, Ursula von der Leyen, in Brussels. Its view of the current economic scenario is critical: without radical change, the EU would face a "slow decline".

Little innovation, low productivity, digital backlogs

There are complaints about a lack of innovation and investment. At least 750 to 800 billion euros are needed every year to overcome the technological and digitalisation gaps, in particular, and to keep the continent competitive. Almost more important: The EU was suffocating in bureaucracy and had neglected its most important task of deepening the single market. Industrial culture is too static, the digital revolution has been missed. Europe is facing "existential challenges" in terms of competition policy - with a view to the USA and China.

EU lags 20 years behind global developments

Draghi's report covers a range of industrial policy issues. The European pharmaceutical industry is regarded as a key industry whose competitiveness should be promoted. However, the public sector would invest far too little in research and development (R&D) in technical terms. Artificial intelligence would also only play a subordinate role. Europe today thus reflects the image of the USA at the turn of the millennium: The three largest areas of investment at the time included the automotive industry and the pharmaceutical sector. Today, the three leading investors are technology companies.

Proposals for the pharmaceutical sector

Chapter 9 of Draghi's report also contains specific proposals. Among other things, it is important to implement the European Health Data Space in such a way that the pharmaceutical industry can optimise the use of health data. In order to promote R&D in pharmaceuticals, clinical trials should increasingly be conducted across countries. Market access for new medicinal products should be accelerated, for example through a coordinated approach by regulatory authorities, HTA authorities and payers in advising manufacturers of medicinal products in pricing and reimbursement as well as procurement. More public money should be channelled into research of medicinal products for advanced therapies.

The industrial perspective is one-sided

As expected, the proposals follow an industrial perspective. It can be assumed that the report will be perused by the European Commission and that some of its contents will be incorporated into the mission letters for the future Commissioners. From the DSV's point of view, it is to be hoped that non-industrial aspects will also be taken into account. The Draghi report ignores aspects of the affordability of medicinal products or the financial sustainability of healthcare systems. The next European Commission must not do this.