Draghi report on EU economy ‘serious but fair’: ECB’s Lagarde

European Central Bank chief Christine Lagarde said on Thursday that a report by her predecessor Mario Draghi calling for sweeping reforms to boost the EU economy was “serious” but “just”.

“It is an enormous report in which it makes a diagnosis that is serious but which is only in our opinion,” Lagarde told a press conference.

The structural reforms proposed by Draghi “could be extremely helpful for Europe to become stronger”, she said.

The report calls on the 27-nation group to boost industrial investment by hundreds of billions of euros each year and boost innovation to keep pace with the United States and China.

Draghi, who served as ECB president between 2011 and 2019, admitted his proposals were “unprecedented”.

The investment package would be a bigger boost than the post-World War II Marshall Plan for rebuilding Europe, he said, but argued it was justified by the “existential challenge” facing the bloc.

Lagarde said the proposals in the report could help the ECB “achieve better results in our monetary policy.”

Productivity gains, deepening of the capital market union and more financing for innovation would be “good news” for the central bank, she said.

“I very much hope that the executive authorities in charge will really take it to heart and see a path towards structural reform,” she said.