Dombrovskis says Europe must close its competitiveness gap

European Commissioner for Economy Valdis Dombrovskis is pictured at the Riga Conference in Riga, Latvia, Sept. 11, 2026. European competitiveness and investment were in focus at the Riga Conference on Friday, as policymakers, diplomats, business leaders and technology experts discussed the EU's economic challenges two years after the Draghi report. Dombrovskis joined the discussion on how the EU can boost competitiveness while strengthening its economic and security capacity. (Photo by Edijs Palens/Xinhua)

European competitiveness and investment were in focus at the Riga Conference on Friday, as policymakers, diplomats, business leaders and technology experts discussed the EU's economic challenges two years after the Draghi report.

European Commissioner for Economy Valdis Dombrovskis joined the discussion on how the EU can boost competitiveness while strengthening its economic and security capacity.

Published in 2024 and led by former European Central Bank President Mario Draghi, the report called for major investment and reforms to improve Europe's productivity, innovation and global competitiveness.

Dombrovskis said competitiveness and security are closely linked EU priorities, as a strong economy is needed to support defense. He said the Competitiveness Compass turns the Draghi report into policy, noting that Europe's productivity growth has lagged behind that of the United States and China.

He said these priorities are reflected in the EU's proposed 2-trillion-euro (2.32 trillion U.S. dollars) budget for 2028-2034, including a new Competitiveness Fund and increased security and defense spending, while maintaining funding for traditional areas such as cohesion and agriculture.

The discussion was part of the Riga Conference, held in the Latvian capital on Sept. 10-11.

The annual international forum brought together policymakers, diplomats, security experts, business leaders and researchers to discuss major challenges facing the Baltic region, Europe and the transatlantic community.