“An existential challenge”. That is how Mario Draghi, former president of the European Central Bank from 2011 to 2019 and prime minister of Italy from 2021 to 2022, described what awaits Europe, while presenting his report on the future of European competitiveness[1] on 9 September. He is not the first to warn of the risks relating to the recent economic trajectory of the European Union. But because of his status, experience, expertise, and the quality of the analysis work that he provided, his words resonated particularly intensely. “Existential”. I invite each of us to be aware of the significance of this adjective. It is not Europe as a geographic entity that is under threat, but rather its social, political, and perhaps even civilisational models, with their values of liberty, peace, democracy and equality. From this perspective, Draghi’s report reaches a clear conclusion: our children’s quality of life tomorrow depends on nothing less than our ability to restore European competitiveness today.

With its moments of respite, the summer break is an ideal time to take a more detached and objective look at current events – both globally, domestically and across Europe – and to nurture renewed reflection. I’d like to take this opportunity to share my thoughts on the current economic situation.

Last year’s relegation of Luxembourg to 20^th place in the IMD World Competitiveness Ranking was already a warning. The loss of a further three places in the recently published 2024 ranking is a real wake-up call. It underlines Luxembourg’s loss of competitiveness in recent years.

Just a few days out from the European elections, we find ourselves facing quite the paradox. The relevance of the European Union has never been more clearly demonstrated than during the current parliamentary term. During the healthcare crisis precipitated by COVID-19, the EU launched an €806 billion recovery plan. The beginning of the war in Ukraine in 2022 prompted the European Union to take decisive action, marking its emergence as a geopolitical force. During the energy crisis, the EU’s measures averted blackouts and supported the economy. And yet, as one of the most intense political cycles in EU history comes to an end, there is a worrying rise in Euroscepticism across member states. Politically, the Union could be significantly weakened after the 9 June elections, which would be tragic, especially in view of the unease ahead of the Hungarian presidency, set to begin on 1 July. We need a strong Europe now more than ever.