Daily Management Review

Bloomberg: Draghi is the new heavyweight of the EU


Bloomberg called the former head of the European Central Bank (ECB) and current Italian Prime Minister Mario Draghi, who gained a reputation as the saviour of the European economy for organising emergency relief programmes during debt crises, the new 'heavyweight' of the European Union.

World Economic Forum
World Economic Forum
The agency points to the difficult situation in which political leaders of leading EU countries find themselves. For example, German Chancellor Angela Merkel is preparing to resign in September and French President Emmanuel Macron is facing a difficult re-election.

Under these circumstances, Draghi is able to take the lead in shaping the EU's political and economic agenda. In doing so, he will enjoy the respect he has earned during his years at the ECB. Politicians and economists interviewed by the agency describe Draghi as an atypical head of the central bank and an unusual technocrat.

Also, the new Italian prime minister was able to find common ground with opponents who hold different views, for example, a staunch socialist, Minister of Finance Yanis Varoufakis of Greece. It was also his reasoning and influence that led to the launch of bailout programmes for the troubled economies of Greece, Cyprus, Ireland and other countries facing a debt crisis throughout the 2010s. He has also initiated several quantitative easing programs to stimulate the European economy.

However, experts remain somewhat skeptical about Draghi's political future due to possible internal disagreements and opposition. In addition, the impact of the coronavirus pandemic may be more serious than Draghi's own expectations.

source: bloomberg.com