In a recent speech at the Centre for Economic Policy Research in Paris, former Italian Prime Minister and European Central Bank President Mario Draghi criticized the European policy of maintaining low wage growth to enhance external competitiveness. He emphasized that this approach, which relied on foreign demand and capital exports, is no longer sustainable. Draghi also highlighted the challenges posed by the slowing Chinese market and the potential strategic shifts under the new U.S. administration, which may impact Europe’s trade dynamics.