Only 16% of Draghi reforms enacted two years on, signaling sluggish EU competitiveness progress
Executive summary: Only 16% of the Draghi competitiveness reforms have been implemented two years after the report’s release, with less than a third partially applied and more than half still pending, according to Banco de España analysis. Slow reform adoption risks undermining EU productivity growth and could keep the bloc dependent on national fiscal buffers rather than structural change.
Who is involved: European policymakers, the European Commission, national governments, the Banco de España, and the former ECB president Mario Draghi.
Likely next: Policy makers may face renewed pressure to accelerate reform implementation, with upcoming EU competitiveness reviews and national budget debates likely to monitor progress.
Two years after the presentation of the Draghi competitiveness report, an analysis by the Banco de España finds that roughly 16 % of the recommended measures have been fully put into practice, while fewer than a third have seen partial adoption and more than half remain unimplemented. The slow uptake suggests that structural reforms aimed at boosting productivity and investment are lagging behind schedule. Consequently, the EU may continue to rely on national fiscal buffers rather than coordinated policy action to support growth.
What's next — scenarios
Base: Continued slow implementation (40%)
EU competitiveness gains remain modest, keeping reliance on national cash reserves and limiting cross‑border investment.
- No major reform progress reports released
- Banco de España tracker shows implementation staying below 20%
- EU Council does not adopt new competitiveness targets
Upside: Accelerated reform rollout (35%)
Implementation rises above 40% within a year, boosting productivity and reducing need for fiscal stimulus.
- European Commission publishes a mid‑term reform scorecard showing >30% adoption
- Banco de España updates tracker to >30%
- EU Council agrees on binding competitiveness milestones
Downside: Further stagnation or rollback (25%)
Implementation falls below 10%, exacerbating productivity gaps and increasing pressure on national budgets.
- Banco de España reports implementation stagnating or declining
- EU delays competitiveness agenda due to political opposition
- National governments announce fiscal consolidation that cuts reform‑related spending
What to watch
- Release of the European Commission’s mid‑term review of Draghi reform implementation
- Update of the Banco de España reform tracker on competitiveness measures
- Discussion of competitiveness reforms at the upcoming EU Council summit
- Any new legislative proposals on tax or energy efficiency linked to the Draghi agenda
Timeline
- — Europa solo ha aplicado el 16% de las reformas del informe Draghi dos años después de su presentación (El País — Economía)
Key entities
Sources
- Europa solo ha aplicado el 16% de las reformas del informe Draghi dos años después de su presentación — El País — Economía