“The main reason EU productivity diverged from the US in the mid-1990s was Europe’s failure to capitalise on the first digital revolution led by the internet — both in terms of generating new tech companies and diffusing digital tech into the economy. In fact, if we exclude the tech sector, EU productivity growth over the past 20 years would be broadly at par with the US.” This passage from Mario Draghi’s report on European competitiveness points to a core part of the agenda for the EU’s future.

However vital, this is just one of the strategic economic challenges the EU confronts. Others include energy vulnerability, the green transition and the rise of protectionism. Draghi provides both a framework and suggestions for how to respond. This will include more interventionist trade and industrial policies. The challenge is to make these policies targeted and sensible.

In the defence industries, for instance, the case for building on the example of Airbus seems strong. Compared with the US, the European defence sector is too fragmented. Cross-border mergers would appear to be essential.