Draghi's plan for the EU: More debt, less bureaucracy, strong car industry

"In the opinion of the former ECB president, the EU must invest a high three-digit billion amount every year in order to keep up with America and China.

 

These are his ideas.

 

Mario Draghi, the former president of the European Central Bank and Italian Prime Minister, presented no fewer than 170 proposals plus sub-proposals to improve competitiveness in the EU to the EU Commission on Monday. Commission President Ursula von der Leyen commissioned him to write a report a year ago. The Italian reported that it was originally supposed to be ready in February. However, new aspects kept coming up, so the publication had to be postponed several times.

 

Draghi's diagnosis

 

The Italian states that there is a productivity and investment gap between the EU and the USA. In the EU, the share of public and private investment must grow by 4.4 to 4.7 percentage points of economic output in the coming years, the Italian demands. That is more than double the aid from the Marshall Plan after the Second World War and corresponds to minimum annual investments of 750 to 800 billion euros. Without higher productivity, Europe cannot be a "leader in new technologies, a beacon of climate responsibility and an independent actor on the world stage".

 

Debt as a response

 

To finance these investments, Draghi is more or less bluntly calling for new community debt. Commission President Ursula von der Leyen responded by pointing out that she also believes more investment funds for the EU are essential. For the time being, however, she sees only two ways to achieve this: higher contributions from member states to the EU budget or completely new financial sources (own resources) for the EU.

 

So far, further community debt has been ruled out because the debt-financed EU reconstruction fund is time-limited.

 

 As an additional step to finance the investments, the Italian is calling for the planned capital market union to be pushed forward as quickly as possible. It should make it possible for the many projects proposed by Draghi to also be financed by private investors.

 

Reducing bureaucracy

 

The EU has passed 13,000 legislative acts since 2019, compared to a generous estimate of 5,000 in the USA, Draghi made clear. This is particularly a burden on small and medium-sized enterprises, which do not have the means to meet the requirements. Draghi is therefore supporting the goal of eliminating 25 percent of reporting requirements and is calling for a dedicated Vice President for Reducing Bureaucracy in the Commission. Above all, however, he criticizes the fact that the EU is slowing down innovation with its regulation, which is based heavily on precautionary measures. This is particularly true in the technology sector. Draghi cites the new AI law and the General Data Protection Regulation as examples of laws that are "killing" small, innovative companies in Europe.

 

Competitiveness and climate

 

One premise of the Draghi report was that it would not shake up the phase-out of fossil fuels. In fact, he sees the expansion of renewable energy, but also nuclear energy, as the solution to a central problem: high energy prices. By reforming the electricity market, the EU should ensure that the lower prices of renewable sources reach the end user and that the more expensive coal-fired electricity does not determine the price.

 

The internal energy market should be completed and the joint purchase of gas should be strengthened. Draghi wants to promote green technologies based on the American "Inflation Reduction Act" (IRA), i.e. not only the capital costs, but also the operating costs. He also calls for quotas for local production. For energy-intensive industries such as metal production or chemicals, Draghi calls for a pragmatic approach that enables them to keep up with international competition through financial aid and more free emission rights.

 

Automotive industry

 

The Volkswagen crisis is currently showing Germans how important the automotive industry is for prosperity. Draghi devotes a separate chapter in his report to the industry, which accounts for 14 million direct and indirect jobs in the EU. He calls for a separate industrial action plan for the automotive industry. The aim is to specifically answer how the EU can keep up with China and the USA, given the "significant support" for the industry there.

 

It is also intended to ensure that the industry has access to the necessary raw materials, as well as to create the conditions for digitalization to progress. Draghi also addresses the controversial ban on combustion engines in 2035. He advocates overturning the ban as quickly as possible and replacing it with a technology-neutral approach that leaves room for cars powered by climate-neutral e-fuels.

 

Foreign trade policy and trade with China

 

Draghi defines security policy as a prerequisite for sustainable growth. The EU must therefore use trade policy to secure access to important raw materials. It must not shy away from building up stocks of raw materials or semiconductors. 

 

The EU should not generally rely on greater isolation from China.

 

Draghi sees the dilemma that the import of cheap green technology helps the EU to achieve its climate goals, but on the other hand is a threat to production in Europe. He therefore advocates a "mixed strategy" that only relies on protecting domestic production through tariffs or quotas in individual cases. Draghi includes the EU's special tariffs on electric cars produced in China. Draghi also wants to protect young, innovative industries. However, in areas in which the EU has long been dependent, such as the solar industry, he sees no point in doing so.

 

Reform of competition policy

 

Draghi wants to use competition policy more than before to serve the European agenda he has formulated. He no longer wants to consider whether national state aid distorts the internal market as the decisive criterion for state aid control. Instead, subsidies that serve the common interest - by which he means above all state support for the "resilience" of companies, economic security and innovation - should be promoted.

 

His proposals for reforming merger control go in a similar direction. This should no longer be as "cautious" as before and should focus on the effects in the future. Faster decisions are also important. Draghi indirectly criticized the fact that the EU Commission banned the planned merger of the train divisions of Siemens and Alstom in 2019. According to the rules in force at the time, the decision was probably correct. However, the rules must allow greater consideration of the common interest in the future. In addition, the Commission's decisions must be regularly evaluated retrospectively.

 

New voting procedures

 

Draghi believes that the EU's decision-making processes are too slow. He proposes extending qualified majority voting in the Council of Ministers to more policy areas and abolishing the need for unanimous decisions. As a last resort, like-minded countries should be allowed to go their own way on some projects." [1]

 

Many good ideas. Big minus is the idea about the auto industry in the EU. Cars are computers on wheels today. The EU is bad with computers. The car industry in the EU will not survive, so we should stop wasting our resources. We should switch completely to production of luxury cars powered by e-fuels. The number of cars produced this way will be small. Rest of the EU should find something else to do.

1. Draghis Plan für die EU : Mehr Schulden, weniger Bürokratie, starke Autobranche. Von Hendrik Kafsack, Werner Mussler, Brüssel.

Dar vienas dalykas neišeina: siekimas gauti pagrindinį buriavimo prizą --- Peržiūrėję savo Amerikos taurės projektą, Dougas DeVosas ir Johnas „Hap' Fauthas tikisi paversti Ameriką sėkminga varžove

 

 „Pirmą kartą Dougas DeVosas ir Johnas „Hap“ Fauthas išsiruošė laimėti buriavimo Amerikos taurę, jų devynženklis projektas vargu ar galėjo būti blogesnis: valtis apvirto ir vos nenuskendo.

 

 Po trejų metų DeVosas ir Fauthas bando dar kartą. Ir šį kartą jie siekia daugiau, nei išlikti vandens paviršiuje. Antrą kartą palaikydami vienintelį šios taurės dalyvį iš JAV, pramintą Amerikos magija („American Magic“), jie tikisi sugrąžinti trofėjų Niujorko jachtklubui, kuris kadaise jį laikė 132 metus, bet nelaimėjo nė karto nuo 1980 m.

 

 Abu vyrai turi daug patirties ambicinguose ištaisymuose. DeVosas yra „Amway“ pirmininkas, o jo šeimai priklauso krepšinio „Orlando Magic“. Fauthas Mineapolyje įkūrė „Churchill Companies“ – privačią investicinę įmonę, kurios akcijų paketas – nuo ​​ nekilnojamojo turto iki žemės ūkio technologijų. Ir abu vykdo pasaulio čempionų buriavimo programas.

 

 Tačiau taurė yra kitokia. Tai apima daugelį metų trunkantį sprintą, kad būtų sukurtas lenktyninis laivas pagal pažangiausią inžinerijos ir sutartų taisyklių ribą, kad būtų galima įveikti daugybę panašiai novatoriškų greičio demonų. Tik tada komanda įgyja teisę į akistatą su ginančiais čempionais.

 

 2021 m. „American Magic“ iškrito iš „Challenger“ serijos nelaimėjusi nė vienos lenktynės. Tačiau to pralaimėjimo agonija dar neišblėso, kol abu vadovai pradėjo planuoti sugrįžimą.

 

 Didelius pokyčius jie turėjo omenyje? Padarykite „American Magic“ dar labiau panašų į profesionalią sporto komandą, nei anksčiau, sakė DeVosas.

 

 Šiandien yra naujas laivas ir kitas biudžetas, viršijantis 100 mln. dolerių. Atsirado naujas generalinis direktorius. Yra nauja į JAV orientuota dizaino komanda, nauji talentai buriavimo sąraše ir nauja 63 000 kvadratinių pėdų namų bazė Pensakoloje, Fla.

 

 Jų varžovas, pramintas Patriotu, kaip ir jo pirmtakas, užėmė trečią vietą prieš kitus varžovus, pasibaigus ankstyvam raundai ir užėmė vietą pusfinalyje. Taigi 75 pėdų mėlyna valtis, apdailinta pilka spalva, jau suteikė tam tikrą atpirkimą.

 

 Tačiau Fauthas ir DeVosas žiūri daug aukščiau. Po Larry Ellisono ir „Oracle Team USA“ pergalės prieš Naująją Zelandiją 2013 m. jokia amerikiečių valtis nėra laimėjusi sidabrinio eterio, vadinamo „Auld Mug“. Kaip Pierpontas Morganas, Haroldas S. Vanderbiltas ar Tedas Turneris, jie taip pat nori sukurti patvarią operaciją, kad komanda ir šalis ilgai ginčytųsi dėl prizų.

 

 „Daugelis žmonių pažiūrėjo, kaip buvome sukurti, ir iš esmės sukūrėme naują modelį“, – sakė Fauthas. „Šiame procese buvo užduotas klausimas: ar tai dviejų šūvių stebuklas, ar mes siekiame svajonės, kuriai reikia laiko, energijos ir įsipareigojimo ilgesniam laikotarpiui?"

 

 Kvalifikacinė serija lems, kam spalį teks kovoti su Emirates Team New Zealand čempione dėl trofėjaus.

 

 Anot Keno Reado, taurės veterano ir bures gaminančios bendrovės „North Sails“ prezidento, favoritai šiuo metu atrodo, kaip čempionų titulą ginanti, ir 2021 m. vicečempionė Italijos komanda.

 

 JAV aiškiai pasimokė iš patirties, pademonstruodama gerą ramybę ir bendravimą ankstyvose lenktynėse, tačiau rezultatai buvo „akivaizdūs aukštyn ir žemyn“.

 

 Konkurentai apima keletą įspūdingų komandų. Tarp jų: ​​Italijos Luna Rossa Prada Pirelli komandai vadovauja Prada pirmininkas Patrizio Bertelli. INEOS Britannia remia milijardierius Jimas Ratcliffe, o jai vadovauja buriavimo legenda Benas Ainslie.

 

 „Amerikiečiai pakeitė visą savo programos ir verslo struktūrą“, – sakė Read. „Jie rodo tam tikrus teigiamus ženklus, bet spėju, kad jie pirmieji pripažintų, kad tikrai turi ką nuveikti."

 

 Antroji „American Magic“ kampanija už pagrindinį buriavimo prizą prasidėjo skausmingu skaičiavimu su pirmąja.

 

 Po 2021 m. žlugimo komandos moralė buvo sugniuždyta, sakė DeVosas. Tačiau viskas sparčiai vystėsi.

 

 Įgula stengėsi išsaugoti valtį ir grįžo į varžybas, o abu vadovai pradėjo svarstyti, kas bus toliau.

 

 „Mes praleidome visą šį laiką, talentą ir lobį“, – sakė jis. „Tai turi virsti kažkuo daugiau“.

 

 Nors ir greitam, originaliam Patriot laivui reikėjo daugiau judrumo ir patobulinimų tokiose srityse, kaip korpuso dizainas ir valdymo sistemos.

 

 Buriuotojams taip pat reikėjo daugiau patirties, plaukiant su laivais, kurie naudoja povandeninius sparnus, kad laivas pakiltų virš bangų. „Labai sunku laimėti“, – sakė naujasis komandos vadovas Mike'as Cazeris. „Tai laukinis super aukštųjų technologijų derinys, bet taip pat sukurtas pagal užsakymą."

 

 Sukūrusi ir pagaminusi naują „Patriot“, kuris buvo paleistas šių metų pradžioje, komanda praleido mėnesius, treniruodamasi atlikti manevrus prie Barselonos krantų.

 

 Jie taip pat įtraukė naujus įgulos narius, įtraukdami olimpinį aukso medalininką Tomą Slingsby į sąrašą, kuriame jau buvo olimpinis čempionas Paulas Goodisonas.

 

 Kiti nauji papildymai apima „ciklorus“ – sportininkus, kurie mina dviračius, varančius laivo hidraulinius valdiklius.

 

 Lenktynės pademonstravo ir pažadą, ir nenuoseklumą. JAV užsitikrino pergales prieš prancūzų „Orient Express“ ir šveicarų „Alinghi“ komandas, tačiau lenktynesse  ​​​​nusileido britams ir italams.

 

 „Negalime nieko sušluoti po kilimėliu“, – sakė komandos buriavimo operacijų prezidentas Terry'is Hutchinsonas. "Taigi viskas, ką mes matome šiuo metu, yra tik sritys, kurias galime patobulinti."" [1]

 

1. Taking Aim at Sailing's Top Prize --- After overhauling their America's Cup project, Doug DeVos and John 'Hap' Fauth hope to turn the U.S. into a contender. Kuriloff, Aaron.  Wall Street Journal, Eastern edition; New York, N.Y.. 09 Sep 2024: A.14.

One More Thing Doesn't Fly: Taking Aim at Sailing's Top Prize --- After overhauling their America's Cup project, Doug DeVos and John 'Hap' Fauth hope to turn the U.S. into a contender

"The first time Doug DeVos and John "Hap" Fauth set out to conquer sailing's America's Cup, their nine-figure project could hardly have gone worse: The boat capsized and nearly sank.

Three years later, DeVos and Fauth are trying again. And this time, they're going for more than staying afloat. By backing this Cup's lone U.S. entrant -- dubbed American Magic -- for a second time, they're hoping to restore the trophy to the New York Yacht Club, which once held it for 132 years, but hasn't won since 1980.

Both men have plenty of experience with ambitious turnarounds. DeVos is the co-chair of Amway and his family owns basketball's Orlando Magic. Fauth founded the Minneapolis-based the Churchill Companies, a private investment firm whose holdings range from real estate to agricultural technology. And both have run world-champion sailing programs.

But the Cup is different. It entails a multiyear-year sprint to build a racing boat on the cutting edge of engineering and agreed-upon rules in order to defeat a series of similarly innovative speed demons head-to-head. Only then does a team earn the right to a showdown with the defending champs.

Back in 2021, American Magic crashed out of the challenger series without winning a single race. But the agony of that defeat hadn't faded before the two executives started plotting a comeback.

The big change they had in mind? Make American Magic even more like a pro sports team than before, DeVos said.

Today, there is a new boat and another budget that exceeds $100 million. There is a new chief executive. There is a new U.S.-centered design team, new talent on the sailing roster and a new 63,000-square-foot home base in Pensacola, Fla.

Their contender, dubbed Patriot like its predecessor, stood in third place against the other challengers near the close of early round robins, clinching a spot in the semifinals. So the 75-foot blue boat, trimmed in gray, has already provided some redemption.

But Fauth and DeVos are setting their sights much higher. No American boat has won the silver ewer, known as the Auld Mug, since Larry Ellison and Oracle Team USA's comeback victory over New Zealand in 2013. And not only are they hoping to add their names next to those of previous syndicate bosses like J. Pierpont Morgan, Harold S. Vanderbilt or Ted Turner, they also want to build a durable operation to keep the team, and country, in contention over the long haul.

"We had a number of people look at how we were set up and basically developed a new model," said Fauth. "In the process, a question was asked: is this a two-shot wonder, or are we following a dream that needs time, energy and commitment over a longer period?"

The qualifying series will determines who faces defending champs Emirates Team New Zealand for the trophy in October.

According to Ken Read, a Cup veteran and president of sail-making company North Sails, the favorites at this point look like the defending champions and 2021 runner-up Italian team.

The U.S. has clearly learned from experience, showing good composure and communication in early racing, but results have been "obviously up and down."

The competitors include some imposing teams. Among them: The Italian Luna Rossa Prada Pirelli team is chaired by Prada Chairman Patrizio Bertelli. INEOS Britannia has the backing of billionaire Jim Ratcliffe and is helmed by sailing legend Ben Ainslie.

"The Americans changed the whole structure of their program and the business," Read said. "They are showing some positive signs, but I'm guessing they would be the first to admit that they certainly have some work to do."

American Magic's second campaign for sailing's top prize began with a painful reckoning with its first.

After the 2021 capsize, morale in the team was crushed, DeVos said. But things rapidly evolved.

The crew worked to save the boat and returned to competition while the two principals began to consider what came next.

"We spent all this time, talent and treasure," he said. "It needs to turn into something more."

While fast, the original Patriot boat needed more agility, along with improvements in areas such as hull design and control systems.

The sailors also needed more experience on hydrofoiling boats, which use underwater wings to send the vessel soaring above waves. "It's so darn difficult to win," said the team's new chief executive Mike Cazer. "It's a wild combination of super high-tech but also bespoke."

After designing and building a new Patriot, which launched earlier this year, the team spent months practicing maneuvers off the Barcelona coast.

They also integrated new crew members, adding Olympic gold medalist Tom Slingsby to a roster that already included Olympic champion Paul Goodison.

Other new additions include "cyclors" -- athletes who will pedal bicycles powering the vessel's hydraulic controls.

The races have showcased both promise and inconsistency. The U.S. secured wins against the French Orient Express and Swiss Alinghi teams, but dropped races to the British and Italian outfits.

"We can't sweep anything under the rug," said Terry Hutchinson, the president of the team's sailing operations. "So all we're seeing right now are just areas that we can improve upon."" [1]

1. Taking Aim at Sailing's Top Prize --- After overhauling their America's Cup project, Doug DeVos and John 'Hap' Fauth hope to turn the U.S. into a contender. Kuriloff, Aaron.  Wall Street Journal, Eastern edition; New York, N.Y.. 09 Sep 2024: A.14.