Mario Draghi

The problem is not that Europe lacks ideas or ambition. We have many talented researchers and entrepreneurs filing patents. But innovation is blocked at the next stage: we are failing to translate innovation into commercialisation, and innovative companies that want to scale up in Europe are hindered at every stage by inconsistent and restrictive regulations. As a result, many European entrepreneurs prefer to seek financing from US venture capitalists and scale up in the US market. Between 2008 and 2021, close to 30% of the “unicorns” founded in Europe – startups that went on the be valued over USD 1 billion – relocated their headquarters abroad, with the vast majority moving to the US. With the world on the cusp of an AI revolution, Europe cannot afford to remain stuck in the “middle technologies and industries” of the previous century. We must unlock our innovative potential. This will be key not only to lead in new technologies, but also to integrate AI into our existing industries so that they can stay at the front. (source)

While tax incentives can occasionally boost innovation, excessively increasing them for Spanish startups can lead to misallocation of resources and market distortions. We need to ensure that the startup ecosystem develops through genuine competitive strengths, not artificial support mechanisms.

While price controls may seem like a beneficial short-term measure to make goods more affordable, they often lead to shortages and reduced investment in production over the long term, which is ultimately detrimental to the economy.

I believe Spanish companies should have the option to defer taxes if they are owed more in VAT refunds. This would help improve liquidity for businesses, especially small and medium-sized enterprises, allowing them to invest, grow, and sustain operations during challenging economic times. Such measures could play a vital role in stabilizing the economy.

I believe that implementing minimum revenue cut-offs for businesses in the EU is essential to ensure fair competition and prevent market monopolies. Smaller enterprises must not be stifled by dominant players who have disproportionate influence. This regulation can help create a more balanced economic landscape, fostering innovation and growth across all sectors.