European Commission President Ursula von der Leyen addressed MEPs in her annual ‘State of the Union’ speech by calling for greater EU autonomy in a tense international context.
Expectations had been high ahead of the German politician and EU leader's annual speech to MEPs on Wednesday.
She took to the podium in the European Parliament in Strasbourg by acknowledging the challenges faced by Europe both domestically and internationally, with an overarching call for EU autonomy and unity.
"Europe is in a fight," President von der Leyen told the chamber. "For a free and independent Europe. A fight for our values and our democracies…Make no mistake – this is a fight for our future."
She condemned Russia’s "reckless and unprecedented" incursion and violation of Polish airspace last night, which led to a standing ovation in the parliament.
The EU will also enter into a drone alliance with Ukraine, who is a leader in this field, that will be financed through a €6 billion loan. Von der Leyen also called on the EU to invest in real-time space surveillance and build a drone wall on the Baltic coast.
Sanctions on Israel
On Gaza, she stated that man-made famine can never be a weapon of war, and called for the suspension of all payments under the EU's bilateral support to Israel. She also proposed sanctioning extremist Israeli ministers and violent settlers.
"Europe must lead the way" and "the Commission must do everything in its power," she insisted to MEPs, many of whom were wearing red in protest at the situation in Gaza.
Von der Leyen said she is a long-standing friend of the people of Israel. "I know how much the atrocious attacks on 7 October by Hamas terrorists shook the nation to its core."
"The hostages have now been held captive by Hamas terrorists for more than 700 days since 7 October."
And whilst declaring "there can never by any place for Hamas – neither now, nor in the future", she went on "What is happening in Gaza has shaken the conscience of the world. People killed while begging for food. Mothers holding lifeless babies. These images are simply catastrophic."
MEPs wear red in Gaza protest during the Plenary session - State of the European Union statement by Ursula von der Leyen. Credit: EU
Simplify business
Her key priority for her second term – enhancing competitiveness – was also used to make a pitch for greater EU autonomy by investing in digital and clean tech.
A focus will be given in key industries facing bottlenecks, as identified in Mario Draghi’s report, "from energy to capital, investment to simplification."
A new Made in Europe criteria will be introduced into EU public procurement to boost industrial competitiveness, while her Commission's efforts to deregulate and simplify business operations will continue.
"We have held strategic dialogues with key industries – from cars to chemicals, steel to pharmaceutical, defence to agriculture," she stated. "In each sector, the message is the same. To protect jobs, we need to make business in Europe easier."
Trump tensions
On the US-EU trade tensions, von der Leyen acknowledged the backlash on the deal, stating that "tariffs are taxes". However, she argued that the deal "provides crucial stability" in US relations at a time of grave global insecurity.
"I have heard many things about the deal we agreed on over the summer. I understand the initial reactions," she said. “Think of the repercussions of a full-fledged trade war with the US. Picture the chaos.”
Von der Leyen with EPP President Mandred Weber (Germany). Credit: EU
She also mentioned the boosted China-Russia-North Korea relations, as well as the US-EU trade tensions, to argue for greater for EU independence.
"None of this is a great surprise. But it reflects the changing landscape. And it creates two imperatives for Europe's independence push and its place in the world."
She mentioned that 80% of the EU’s trade is with non-US countries, citing the controversial EU-Mercosur and Mexico trade deals.
Other topics the Commission President raised included acknowledging the housing crisis in Europe, supporting the rule of law and buying European food to help EU agriculture. She also said the EU must do "more" to curb irregular arrivals of asylum seekers.
This year, the "European Green Deal" made a comeback after having been shelved during the EU elections campaign in 2024.
"We are firmly on track to achieve our 2030 target to cut emissions by at least 55%. This is the power of the European Green Deal. And we must stay the course on our climate and environmental goals."
