Europe: a federation to stand up to China and the United States?

Mario Draghi has launched a strong appeal in Belgium to transform the European Union into a federation capable of resisting pressure from the major powers, arguing that the current model of a confederation of 27 states with individual veto rights does not produce real power. The former president of the European Central Bank believes that globalisation has created dangerous dependencies, which Washington and Beijing can use to weaken each country separately. According to him, the risk is that European states will be "picked off one by one" in the absence of a common authority capable of speaking with one voice.

The former Italian prime minister pointed out that Europe is only respected as a global player in areas where it has already agreed to pool its competences, notably trade, competition, the single market and monetary policy. In these areas, he noted, common institutions make it possible to negotiate as a unified entity. Conversely, in defence, industrial policy and foreign affairs, countries remain fragmented and are treated as a mere assembly of medium-sized states, easy to divide.

Mario Draghi explained that the threat concerns not only certain governments but the entire continent, even those that are not yet aware of it. He believed that the old divisions, which had long been paralysing, could be overcome by a common danger, but warned that fear alone would not be enough to build the future. What began in anxiety must, in his words, continue in hope and with a clear political project.

His comments come amid transatlantic tensions, marked by Donald Trump's stated desire to annex Greenland, an autonomous territory of Denmark, a member of the European Union and NATO, as well as threats of tariffs against European countries. These statements have shaken capitals accustomed to relying on the American alliance for their security. Europe is struggling to compete with China, which dominates the supply chains for critical minerals and green technologies thanks to a heavily subsidised export model.

He envisages a group of pioneering countries taking the lead in energy, technology, defence or foreign policy, without waiting for unanimity among the 27. The former president of the European Central Bank acknowledges that the path to a federation will not be easy, given the persistent political differences. He cited the example of Robert Schuman, one of the founding fathers, to remind us that European integration has always been achieved in successive stages.

Mario Draghi also recalled that he had already advocated in 2024 for deeper economic integration in order to strengthen the single market, believing that European competitiveness depends on rapid joint decisions. He believes that only a democratic federal organisation will enable decisive action in all circumstances, whereas the current system, based on national sovereignty, is, in his view, a source of vulnerability. Financial Times

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