For centuries, tiny Aachen has been seen as a symbol of a united Europe.

It was from here that Charlemagne (ca. 748-814) ruled the largest empire in western Europe since the fall of Rome, a legacy that later led him to be considered a medieval "father of Europe."

The Charlemagne Prize honors those who strive for European unity in a more modern way. At a ceremony on May 14, it will be given to Mario Draghi.

Who is Mario Draghi?

Draghi is likely mostly remembered as the head of the Frankfurt-based European Central Bank (ECB) who stabilized the eurozone during turbulent times; but he had many other career stops along the way.

Draghi started out as a professor of economics in Italy. Later he worked at the World Bank and Goldman Sachs. Over the years, he served on the board of several Italian banks and companies.

From 2006 until 2011 he was the governor of the Bank of Italy, the country's central bank.

During his time there, problems started to surface in the US subprime mortgage market. By 2008, the situation turned into a global crisis, following the collapse of Lehman Brothers, an investment bank, and wreaked havoc on economies around the world.

President of the European Central Bank

In the middle of all this turmoil, Draghi was selected to run the European Central Bank in 2011.

By this time, the global financial crisis had turned into a Europen debt crisis. This led to austerity measures and bailouts in some eurozone countries, most notably Greece.

Draghi tirelessly defended the single currency and became known for saying the ECB would do "whatever it takes" to stop the euro from failing. This was seen as a turning point in the eurozone crisis.

In 2015, the bank started to buy large amounts of bonds to inject money into the economy. Called "quantitative easing" the program was meant to combat low inflation and weak economic growth.

Critics argue that these policies kept interest rates too low for too long. The bank's quantitative easing program expanded its mandate and meant some governments had less incentive to work on structural reforms.   

"While not every single decision by Draghi can be seen, in hindsight, as successful, the overall balance is strongly positive," said Francesco Papadia, a senior fellow at the Brussels-based think tank Bruegel.

Europe "was well served by having him at the helm of the ECB during very difficult times," added Papadia, who also held senior positions at the Bank of Italy and the European Central Bank.

Prime minister and competitiveness guru

After leaving the European Central Bank in 2019, Draghi was called home to Italy, which was going through a COVID-19 and government crisis.

He stepped in, formed a government and was prime minister for 20 months in 2021-2022 before losing parliament support, resigning and handing the reins to Giorgia Meloni.

For many that would have topped off a long career, but Draghi was not finished.

In 2024, he published a hard-hitting report on the EU's economy that many dubbed the "Draghi Report." The paper included 383 recommendations to reverse declining productivity and close the competitiveness gap with the US and China.

The report "has rightly become the blueprint for helping the EU surpass its economic limitations and achieve new strength and vitality in current difficult conditions," Papadia told DW.

Among other things, it called for more cross-border collaboration, investments in advanced technologies like AI and semiconductors, reducing high energy prices, integrating capital markets and more EU-level governance. Above all, it called for decisive action.

What is the selection committee saying?

"Draghi is being honored for his exceptional achievements, his pivotal role in stabilizing the European Economic and Monetary Union, and his efforts to promote European competitiveness," wrote the board responsible for the prize in a January press release.

"He has proven his exceptional leadership skills in rescuing the euro with his famed 'whatever it takes' promise, stabilizing Italy during the pandemic, and now devising a future agenda for the entire continent." 

The board sees the "Draghi Report" as a call to action "to secure Europe's place in the world for future generations."  

With ongoing wars in Ukraine and Iran, and strained relations between the US and most of the world, the prize is a timely reminder that European unity is indispensable.

What is the Charlemagne Prize?

The International Charlemagne Prize of Aachen has been awarded nearly every year since 1950. It is meant to honor an individual or institution that has made an outstanding contribution to European unity.

After the destruction of World War II, the founders of the award wanted to use it to promote peace, cooperation and European integration.

Previous winners include Winston Churchill, Helmut Kohl, Bill Clinton, Angela Merkel and popes John Paul II and Francis. In 2023, the Charlemagne Prize was awarded to Ukrainian President Volodymyr Zelensky and the Ukrainian people.

Edited by: Andreas Becker