Europe must transform into a federation to survive in a world where the United States and China are rewriting the rules of the game. This was the core message from Mario Draghi, former President of the European Central Bank (ECB) and former Prime Minister of Italy. “We must decide whether we want to become a global power or remain subject to the priorities of others.”
Mario Draghi
Mario Draghi advocates for a European federation to stand firm against superpowers like the US and China. Receiving an honorary doctorate at the University of Leuven (Belgium), Draghi argued that Europe must choose between being a market subservient to outside interests or becoming a sovereign global force. He proposes “pragmatic federalism,” where willing nations start building joint institutions with real decision-making power in specific sectors.
The Collapse of the Old World Order
During his acceptance speech at KU Leuven, the man credited with saving the euro did not mince words regarding Europe’s precarious global standing. Draghi noted that the global order, which underpinned European prosperity for decades, has permanently collapsed. This shift is driven by the changing stances of major powers.
”Beijing controls critical points in global supply chains and does not hesitate to use that power as leverage,” Draghi remarked. “Meanwhile, our traditional ally, the US, is increasingly focused on its own costs and less on the mutual benefits derived from cooperation with Europe.”
”We are facing a future where Europe risks becoming
simultaneously subordinate, divided, and deindustrialized.”
Mario Draghi
From Confederation to Federation
To counter these threats, Draghi insists Europe must move away from its current model as a confederation (a loose collection of states with veto powers) and evolve into a true federation, effectively a “United States of Europe.”
”A group of states that merely coordinates remains just a group of states,” he argued. “We must decide: do we remain just a large market subject to the priorities of others? Or do we take the necessary steps to become a global power?”
He pointed out that while Europe acts as a unified bloc in trade, competition, and monetary policy (earning respect as a global player) it remains a “loose collection of mid-sized states” in areas like defense and foreign policy. This fragmentation makes the continent vulnerable to being “picked off one by one” by superpowers.
The Greenland Precedent
Draghi cited Europe’s military deployment to Greenland as a prime example of successful unity. This move followed repeated suggestions by U.S. President Donald Trump regarding placing the island under American authority.
”By acting together against a direct threat, Europeans discovered a level of solidarity that previously seemed unattainable,” Draghi noted. He believes this shared determination resonated far more with the public than the typical declarations following European summits.
Pragmatic Federalism
Draghi’s solution is “pragmatic federalism.” This approach does not require every nation to hand over power in every sector immediately. Instead, he suggests that countries willing to cooperate should lead the way in specific domains such as energy, technology, or defense.
”As Robert Schuman said in 1950, Europe will not be built all at once,” Draghi reminded his audience. “Not all countries will participate in every initiative from the start. The door remains open to others, but not to those who would undermine the common goal.”
His vision involves building common institutions with genuine authority to act decisively under any circumstances. He pointed to the success of the Euro as the ultimate blueprint: a group of countries took the lead, built institutions with real authority, and created a bond of solidarity that goes deeper than any treaty.
Watch Mario Draghi’s speech in Leuven (from the 4th minute onwards):