Mario Draghi appears to have impressed key MEPs with his plans to boost sluggish EU economic growth – but not everyone is convinced.

Draghi, former head of the European Central Bank and ex-Prime Minister of Italy, is likely to publish his report on European competitiveness next week, potentially as early as Monday, but briefed MEPs on his findings yesterday (4 September).

“The great message that competitiveness is the number one issue … as the business party of Europe, we welcome this very much,” Manfred Weber, leader of the centre-right European People’s Party (EPP), told reporters after the meeting.

“The last five years were the Green Deal years … based on this [report], we open the next chapter,” he added.

Weber, who represents the European Parliament’s largest political grouping, cited the need for Airbus-style European flagship projects, and the need to ensure that environmental technologies like heat pumps and electric cars are produced in Europe rather than in the US or China.

Draghi’s report, originally due in June, was requested by Commissioner President Ursula von der Leyen, also from the EPP, last year – and follows hot on the heels from a report by fellow ex-Italian Prime Minister Enrico Letta.

In April, Letta said he’d sounded a “big, red alarm” about a growing economic gap with the US, urging reforms to market rules on energy, telecoms and financial services.

Cautious welcome

Draghi’s findings – which are said to include specific recommendations for ten key economic sectors, perhaps on similar lines to Letta – gained a more cautious welcome from others in the Parliament.

“What I very much like … is that he indeed stands very clearly with European values” such as public services and climate change, said Bas Eickhout, co-leader of the Parliament’s Green group. “He’s sounding the alarm bell very clearly.”

“You will not see in the report anything mentioning of labour costs, because he said that’s not the problem,” Eickhout added – attempting to address a criticism that the report will be used to justify cutting workers’ wages.

Instead the report will examine Europe’s “complacency” in the wake of high energy and costs and low productivity in important high-tech sectors, he added.

Support is rather more nuanced among left-leaning MEPs.

In a statement, socialist group leader Iratxe García said any economic relaunch needed to be “built on quality jobs and affordable energy”, including a “Buy Green and European Act”.

Others, such as Manon Aubry of the Parliament’s Left group, were impressed neither by Draghi’s conclusions, nor his candour.

“It was a presentation paying lip service which didn’t say much,” Aubry told reporters after the meeting, adding that MEPs had been “left in the dark”.

“I’d like us to talk about competitiveness, but then we’d have to call into question the European trade policy that’s sold off our industry … there’s at minimum a hypocrisy, if not a fundamental contradiction,” she said.

“What is Mario Draghi’s democratic legitimacy to write such a report … did you, or anyone at all, elect him?” Aubry asked.

The Swedish automaker Volvo Cars has abandoned its plan to exclusively sell electric vehicles by 2030 due to softening demand for pure battery-powered cars.

Following the announcement on Wednesday, Volvo’s shares fell by more than 4% and have declined by 12% over the past six months.

The company also reported disappointing earnings for the first quarter and provided weak guidance during its second-quarter earnings call.

Instead of aiming to become a fully electric car manufacturer, Volvo is now targeting “90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars,” which includes a mix of fully electric and plug-in hybrid models.

The remaining 0-10 per cent will allow for a limited number of mild hybrid models, if necessary.

Volvo still expects to produce 50 to 60 per cent electrified vehicles by the middle of this decade, which would position it to become a fully electric carmaker when “conditions are suitable.”

The company noted that 26 per cent of its products are fully electric cars, the highest share among its premium competitors.

Its total electrified share, including EVs and plug-in hybrids, accounted for 48% in the second quarter of this year.

Rising demand from customers for hybrid vehicles

The growing demand for hybrid vehicles and the decreasing affordability of pure electric cars have been putting pressure on electric carmakers’ profit margins.

The renowned EV maker Tesla has seen a continued decline in profit margins and slowing growth since 2023.

CEO Elon Musk has indicated a shift in consumer preference from 100% electric cars to hybrid vehicles.

Amid sluggish consumer demand and a price war in China, automakers are facing macroeconomic headwinds.

The industry is also experiencing uncertainties due to new import tariffs on Chinese-made EVs imposed by the EU and the US, with China pledging reciprocal measures.

Appeal of owning an electric vehicle has ‘diminished’

“It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption,” Volvo stated.

“We are pragmatic and flexible while retaining an industry-leading position on electrification and sustainability.”

Government subsidies for renewable energy vehicles have previously incentivised consumers to buy fully electric cars.

However, with these incentives expiring and falling crude oil prices, the appeal of owning a fully electrified vehicle has diminished.

Volvo noted, “The slower-than-expected rollout of charging infrastructure, withdrawal of government incentives in some markets, and additional uncertainties created by recent tariffs on EVs in various markets.

With this in mind, Volvo Cars continues to see the need for stronger and more stable government policies to support the transition to electrification.”

Volvo Cars, owned by China’s Geely, is the latest major car manufacturer to scale back its ambitious plans for a purely electric vehicle transition, though it remains committed to achieving net zero greenhouse gas emissions by 2040.

In July, Luca De Meo, CEO of French automaker Renault, warned that customers are not yet ready to switch to battery-powered vehicles.

He called for more flexibility in the schedule, referring to Europe’s green energy transition and the target to shift to EVs by 2035.

German luxury carmaker Porsche also scaled back its target of selling 80% fully electric vehicles.

Other mainstream car manufacturers, including Ford and Fiat, have also expressed concerns that EV-only plans by 2030 may be over-ambitious.”

Sad to see the end of summer? September is still a great time for a train adventure thanks to extended deals from French national rail operator SNCF.

Throughout the month, its ‘Les Jours Traincroyables’ campaign promises to “extend the summer” with a series of ticket offers on Intercités, Ouigo, TER and TGV INOUI trains.

Various flash sales are planned until 30 September offering discounted journeys on regional and longer distance high-speed services.

To secure cheap train travel in France and beyond, here are the dates to put in your calendar.

Flash sales on French trains this September

SNCF Voyageurs’ month of discounts kicks off with a Ouigo flash sale on 4-5 September. It will see 200,000 tickets on the operator’s classic and high-speed trains sold for a maximum of €19 each.

The high-speed train service offers low-cost travel throughout France and onward to destinations in Spain.

Stay on alert from 10-13 September, when 30,000 tickets between Normandy and Paris costing no more than €12 will be released in the Nomad Train Flash Sale.

Cheap tickets (between €3 and €13) will also be available in the eastern region of Bourgogne-Franche-Comté, and to or from Paris, all month long.

Further west, under-26-year-olds can take advantage of €4 to €15 tickets for travel in Brittany, while down south in Nouvelle-Aquitaine under-28s can travel for just €2.

Heading to the northern Hauts-de-France region? Here, bargain €2 train tickets have no age limit – and 5,000 of them will be released each day throughout September.

To catch the end of the green season in the mountains, travel on Saturdays for a 40 per cent group discount on TER Auvergne-Rhône-Alpes trains.

Cheap train travel in Europe this September

The train ticket deals aren’t limited to French destinations. Between 18-29 September, you can discover Europe thanks to €39 tickets with TGV INOUI and TGV Lyria.

TGV INOUI operates high-speed trains to over 200 destinations in France and Europe, including in Germany, Italy and Spain, while TGV Lyria operates between France and Switzerland.

A further sale on TGV INOUI and Intercités trains from 23-27 September will offer tickets from €19 to €29, with an upgrade to first-class costing just €1 extra.

For cheaper train travel in Europe all year round, take advantage of the Carte Liberté, which offers fixed rate discounts to frequent travellers and is currently available at up to €80 off.