BUDAPEST, Nov 8, 2024 (BSS/AFP) - Reforming Europe's economy has become all the more urgent following Donald Trump's US election win, warned the author of a blockbuster report, Mario Draghi, as he arrived Friday for EU leaders' talks in Budapest.

In the report published in September, the former European Central Bank chief issued warnings over Europe's failure to keep up with the United States, pointing to the EU's low productivity and economic slowdown.
"The recommendations in this report are already urgent, given the economic situation we are in today. They have become even more urgent after the US elections," Draghi said Friday.

"The sense of urgency today is greater than it was a week ago."
Commissioned last year, the report was written to steer the EU's executive arm under Ursula von der Leyen, who won another five-year term in July.

Draghi spoke to the media before talks set to be dominated by his report, which urged the EU to invest up to an extra 800 billion euros ($863 billion) a year to catch up with the United States.

Calling for investments to boost productivity in Europe, Draghi said the incoming Trump administration will likely give further impetus to the US tech sector, a key economic area where Europe is lagging behind.

The new US government will also likely protect traditional industries, where the EU exports "the most to the United States", said Draghi, who is also a former Italian prime minister.

"There we should negotiate with the American ally, with a united spirit to protect our European producers," he said.

"There is no doubt that the Trump presidency will make a big difference in the relations between the United States and Europe. Not necessarily all in a negative sense, but certainly we must take note," Draghi said.
Top EU officials also emphasised the urgency for Europe to tackle its sluggish growth.

"Competitiveness is not just a buzzword, it is one that means that we need to focus on economic growth," said European Parliament President Roberta Metsola.

Draghi's report formed an "excellent basis" for reforms, EU chief Charles Michel told reporters in Budapest. "Everything is on the table," he added, especially financing.