Mario Draghi Comes to Athens with a Vision for Europe - Common Debt, Investment, and Institutional Renewal

His appearance comes at a time when the bloc stands at a crossroads: either embrace bold reform or risk prolonged stagnation.

As Europe navigates an era of heightened uncertainty - shaped by geopolitical turbulence, rapid technological transformation, and institutional fatigue

- Athens is set to host a key moment of reflection and strategy. From July 1 to 3, 2025, the 29th Annual Economist Roundtable with the Government of Greece will convene at the Grand Resort Lagonissi. Under the theme “Walking steadily across a tightrope of uncertainty,” the conference aims to spark high-level dialogue on the future of Europe’s economy, security, and environmental policy, positioning Greece as a gateway for broader regional discussions.

At the center of attention this year is Mario Draghi, the former President of the European Central Bank, whose participation signals the gravity of the challenges facing the European Union. His appearance comes at a time when the bloc stands at a crossroads: either embrace bold reform or risk prolonged stagnation. Draghi is expected to present an ambitious vision for Europe’s economic revival—one that calls for deeper integration, coordinated fiscal action, and a reset of the continent’s institutional architecture.

Draghi’s proposals come as internal debates within the EU intensify over the future role of the ECB. Many member states now advocate for the Bank to gradually step away from its role as Europe’s crisis firefighter—specifically, to reduce its vast holdings of sovereign bonds and restore fiscal discipline. Yet, this transition is fraught with difficulty. The continent must also address growing demands for investment in defense, green infrastructure, and technological innovation, all while maintaining cohesion among its diverse economies.

The cracks in the European framework, dramatically exposed during the 2010 sovereign debt crisis, have yet to be fully addressed. At that time, the ECB—under Draghi’s leadership—took unprecedented steps to prevent a collapse of the eurozone, including massive bond-buying programs and the now-iconic promise to do “whatever it takes” to preserve the euro. Those emergency interventions became a de facto substitute for deeper structural reforms, which never fully materialized. In the years that followed, political momentum for institutional change faded, and the ECB found itself repeatedly stepping in to stabilize markets, particularly through successive rounds of quantitative easing.

The COVID-19 pandemic only reinforced that pattern. As economic shockwaves spread, the ECB expanded its role further, intervening in bond markets to suppress yield spreads among member states. While these actions averted short-term turmoil, they have also raised long-term concerns. The return of double-digit inflation has damaged the ECB’s credibility as the guardian of price stability and triggered new fears that it may not be equipped to handle the next crisis.

Today, Europe finds itself burdened by soaring public debt, fragile banking systems, and regulatory environments that inhibit innovation. The close ties between banks and national governments—through large holdings of sovereign bonds—make the financial system particularly vulnerable to any future debt crisis. Many analysts now consider another crisis not just possible, but likely. And this time, the ECB may have fewer tools at its disposal.

What Draghi and other economists argue is that the real failure lies not in the ECB’s extraordinary interventions, but in the EU’s persistent political and institutional inertia. Europe cannot continue to rely on emergency measures to hold the system together. What it needs instead is a comprehensive institutional overhaul—a “reset” that would equip the EU with a fiscal mechanism capable of intervening quickly and decisively in times of crisis. Such a mechanism, backed by strict conditions, could free the ECB from having to operate beyond its legal and institutional mandate.

In Athens, Draghi is expected to present a wide-ranging plan to reboot the European economy, centered on restoring competitiveness in a world of growing pressure and fragmentation. At the heart of his vision is the idea of issuing common European debt to finance large-scale investments, particularly in green energy and technological innovation. He is also expected to call for a deeper integration of European capital and financial markets, arguing that fragmented markets weaken the EU’s ability to fund its priorities and compete globally.

Draghi’s proposals are likely to highlight the growing gap between Europe and global powers like the United States and China in areas such as artificial intelligence, semiconductors, and digital infrastructure. He is expected to emphasize the risks of Europe’s dependence on imported raw materials and the challenge of maintaining social stability as the population ages and new technologies reshape the labor market.

Finally, Draghi is likely to address one of the EU’s most persistent obstacles: its slow and often paralyzed decision-making processes. He is expected to make the case for more flexible governance structures, warning that the requirement for unanimous agreement among member states is no longer viable in a world that demands speed, agility, and strategic clarity.

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