Europe needs unprecedented investment surge, says key report [Video]

Europe must massively ramp up investment including through joint borrowing as part of a “new industrial strategy” to keep pace with the United States and avoid dependence on China, a keenly awaited report warned Monday.

EU chief Ursula von der Leyen last year asked Mario Draghi, a former Italian premier and European Central Bank chief, to report back on how the 27-country bloc can increase competitivity amid rising global insecurity and economic challenges.

His report calls for additional yearly investment of at least 750-800 billion euros ($830-$885 billion), amounting to almost five percent of the EU’s gross domestic product.

Draghi acknowledged this would be “unprecedented”, representing a bigger boost than the post-World War II Marshall Plan to rebuild Europe, arguing that it was justified by an “existential challenge” facing the bloc.

“For the first time since the Cold War, we must genuinely fear for our self-preservation, and the reason for …