The former Italian Prime Minister Mario Draghi has proposed a fundamental overhaul of the EU's competition policy in a comprehensive report on European competitiveness. Draghi criticizes that the European focus on low consumer prices is outdated and disadvantages European companies in the global competition for scaling and innovation.

The report proposes, among other things, that companies should be given more freedom to collaborate with competitors on investments. Additionally, Draghi suggests not only examining mergers beforehand but also continuing to monitor them after approval. This is to ensure that agreements and market power are not used to the detriment of consumers. Draghi especially recommends assessing mergers at the EU level for markets like telecommunications, even if these lead to dominant market positions at the national level.

One of the most drastic changes would be the realignment of competition policy with regard to innovations and technological developments. Draghi argues that mergers should be allowed if they have the potential to promote long-term investments, with companies being subsequently reviewed to ensure these promises are kept.

The competition should be more forward-looking and not just based on preventive approaches," Draghi told reporters on Monday. He added that it is not necessary to change the EU merger control rules or state aid regulations, but simply to adjust the internal guidelines of the Commission to make them "fit for purpose.

While Draghi's proposals are met with approval by some EU officials, critics warn that these changes could loosen competition rules in favor of large corporations. A senior EU official called the plans "madness," as they could weaken competition policy and lead to higher prices and lower investment incentives.

Nevertheless, Draghi's report reflects the political trend in Brussels. EU Commission President Ursula von der Leyen had already called for a "new approach" in July that aims to enable European companies to become more competitive in global markets.