The European Parliament's Committee on Constitutional Affairs (AFCO) has set its sights on shaking up the institutional landscape to turbocharge the European Union's competitiveness. This report, published on October 17, 2025, targets policymakers, national authorities, EU producers, and economic stakeholders alike, promising to stir a lively debate over the balance between EU powers and national sovereignty.
This impetus comes from the "Report on the institutional aspects of the Report on the future of European Competitiveness," commonly known as the Draghi Report, issued by the AFCO Committee within the European Parliament. The report builds on analyses and proposed amendments formulated earlier in June 2025.
Classified as a detailed legislative report containing concrete proposals, the document does more than pay lip service to reform. It delineates specific institutional changes aimed at strengthening EU governance structures to foster economic competitiveness. Numerical targets, deadlines, and recommended procedural modifications are part and parcel of the text, designed to drive measurable action.
The policy orientation leans towards enhancing the EU’s institutional capacity at the expense of some national sovereignty, emphasizing deeper integration in economic governance. This marks a tilt favoring increased EU powers and oversight mechanisms, alongside calls for stricter regulatory alignment for member states. The balance struck prioritizes competitiveness and regulatory uniformity over preservation of traditional national prerogatives.
EU regulatory bodies and producers in the manufacturing and service sectors may welcome clearer governance and streamlined rules bolstering market access and innovation. Conversely, national authorities might confront challenges due to constraints on their policy maneuvering. EU consumers could benefit indirectly from enhanced competitiveness, while civil society groups might raise concerns about transparency and democratic oversight of stronger EU institutions.
Looking ahead, this report signals the start of a legislative process expected to engage the European Commission and the Council for further consideration. AFCO’s proposals open the door for negotiations around institutional reforms essential to shaping the EU’s competitive edge in the coming decade.
← Atlas › News › EU affairs & Institutions