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illuminem summarises for you the essential news of the day. Read the full piece on The Economist or enjoy below:
🗞️ Driving the news: Europe's labour market is increasingly misaligned with the demands of a rapidly changing global economy
• Despite growing consensus on the need for reform, only a fraction of proposed solutions—such as deepening the single market and integrating capital flows—have been enacted
• Former ECB President Mario Draghi has criticised the slow pace of progress, warning that European governments have failed to acknowledge the urgency of structural change
🔭 The context: Europe faces growing economic divergence with the U.S. and China, driven by its fragmented regulatory environment, sluggish innovation adoption, and rigid labour structures
• Draghi’s recommendations aimed to address these inefficiencies by fostering greater mobility of workers and capital
• However, entrenched national interests and political inertia have slowed the implementation of necessary reforms, risking further decline in global competitiveness
🌍 Why it matters for the planet: A dynamic and adaptable workforce is essential for accelerating Europe's green and digital transitions
• Labour immobility and outdated job structures hamper the uptake of clean technologies, stifle innovation in climate solutions, and limit the reallocation of talent into sustainability-focused sectors
• Without meaningful reform, Europe risks falling behind in meeting its climate goals and building a resilient green economy
⏭️ What's next: Key EU institutions are expected to review progress on Draghi's agenda ahead of the 2025 European Council summit
• Reforms to ease cross-border employment, retrain workers in climate-critical sectors, and remove administrative bottlenecks in capital markets are under discussion
• The outcome will shape Europe’s ability to respond to industrial disruption, attract green investment, and maintain social cohesion during its economic transformation
💬 One quote: “Governments have not grasped the gravity of the moment,” – Mario Draghi, former European Central Bank President
📈 One stat: Only 10% of the policy proposals outlined by Mario Draghi to modernise the EU’s economic framework have been implemented, according to the European Policy Innovation Council
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