Former ECB Chief Mario Draghi has issued a stern warning that the European Union’s self-perceived geopolitical might has crumbled under the pressure from US President Donald Trump. Draghi, a former Italian Prime Minister and central bank chief, stated that Trump’s policies have dealt a blow to the EU’s belief that its economic strength translates directly into international influence.
Trump’s approach, which includes pressuring NATO allies to increase military spending and pushing the EU into a trade agreement that heavily favors the United States, has left the EU with a more peripheral role in global politics. Draghi pointed out that the EU’s economic size with 450 million consumers has not translated into geopolitical power, as seen in their limited influence in key international issues such as Ukraine and Gaza.
Draghi called for urgent reforms, including the removal of trade barriers and the issuance of common debt to support the EU’s strategic objectives. However, critics argue that such measures could undermine national financial autonomy and lead to internal disputes, especially among wealthier EU nations that may be reluctant to finance less economically disciplined members. Despite these concerns, experts warn that without addressing structural challenges, the EU risks stagnation and further loss of relevance in international affairs.