In a scathing and urgent assessment, former European Central Bank chief Mario Draghi has declared that the "current world order is dead" - and Europe must rapidly reform its economic model or face being left behind by the United States and China.

Draghi's dire warning, outlined in a landmark report commissioned by the European Commission, paints a bleak picture of Europe's future if sweeping changes are not made. According to Draghi, the EU faces an "existential challenge" and must increase investment by a staggering €800 billion per year - the equivalent of 5% of the bloc's GDP - just to keep pace with its global rivals.

A Crumbling Global Order

What this really means is that the post-Cold War international system, long dominated by the United States, is crumbling. As The Guardian recently reported, Europe has now lost one of its key superpower allies in the US, with the Trump administration openly seeking to undermine the EU and boost far-right movements.

At the same time, the BBC notes that China is emerging as an increasingly assertive global power, with its own priorities that don't necessarily align with Europe's interests. The bigger picture here is that the geopolitical landscape is shifting rapidly, and Europe is at risk of being caught in the crosshairs of these two superpowers.

Urgent Need for Reform

Draghi's solution is clear: Europe must act decisively to reform its economic model and boost productivity and innovation. As Reuters reports, he is calling for a "massive investment" of up to 5% of GDP per year - more than double the scale of the post-WWII Marshall Plan.

This investment, Draghi argues, is essential to financing Europe's social model and maintaining its global competitiveness. Without it, the EU will be "forced to choose" between its climate, economic, and foreign policy goals - a choice no leader wants to make.

The stakes could not be higher. As Draghi warned, Europe faces a "slow agony" if it fails to heed his advice and rapidly transform its economic foundations. The current world order may indeed be dead, but the future of the European project hangs in the balance.