Extract – 2025 State of the Union.

Full speech: 2025 State of the Union Address by President von der Leyen

………

Honourable Members,

Europe’s independence will depend on its ability to compete in today’s turbulent times.

We have everything it takes to thrive here in Europe – from our single market to our social market economy.

But we know the economic and geopolitical headwinds are strong.

And we have seen how dependencies can be used against us.

This is why we will massively invest in digital and clean tech.

With more to come in our future Competitiveness Fund and a doubled Horizon Europe, our research and innovation programme.

And we are tackling the key bottlenecks identified by the Draghi report – from energy to capital, investment to simplification.

We have held strategic dialogues with key industries – from cars to chemicals, steel to pharmaceutical, defence to agriculture.

In each sector, the message is the same.

To protect jobs, we need to make business in Europe easier.

And the omnibuses we have put on the table so far will make a real difference.

Less paperwork, less overlaps, less complex rules.

Our proposals will cut EUR 8 billion a year of bureaucratic costs for European companies.

A digital Euro for example will make it easier for companies and consumers alike.

And further omnibuses are on their way – for example on military mobility or digital.

For innovative companies, we are preparing the so-called 28th regime and speeding up the work on the Savings and Investments Union.

Because we have many high potential startups in key technologies like quantum, AI or biotech.

As they grow, the limited availability of risk capital forces them to turn to foreign investors.

This is wealth and jobs going elsewhere.

And it jeopardises our tech sovereignty.

This is why the Commission will partner with private investors on a multi-billion euro Scaleup Europe Fund.

It will help make major investments in young, fast-growing companies in critical tech areas.

Because we want the best of Europe to Choose Europe.

 

Honourable Members,

Our greatest asset is the Single Market – but it remains unfinished.

The IMF estimates that the internal barriers within the single market are equivalent to a 45% tariff on goods.

And a 110% tariff on services.

Just think of what we are missing out on.

And, as underscored by the Letta report, the Single Market remains incomplete, mostly in three domains: finance, energy, and telecommunications.

We need clear political deadlines.

This is why we will present a Single Market Roadmap to 2028.

On capital, services, energy, telecoms, the 28th regime

and the fifth freedom for knowledge and innovation.

Only what gets measured, gets done.

 

Honourable Members,

This will also support our investment in the technologies that will fuel our economy.

Clean and digital.

Take artificial intelligence.

A European AI is essential for our future independence.

It will help power our industries and our societies.

From healthcare to defence.

So – we will focus on the first key building blocks – that’s from the Cloud and AI Development Act to the Quantum Sandbox.

We are massively investing in European AI Gigafactories.

They support our innovative start-ups to develop, train, and deploy their next-generation AI models.

When we called on the private sector to join forces with us, the response was overwhelming.

And later today I will meet CEOs from some of the largest European tech champions.

They will hand over their European AI & Tech Declaration.

This is their commitment to invest in Europe’s tech sovereignty.

 

And we must also take the same approach on clean tech – from steel to batteries.

Europe’s clean tech sector must stay in Europe – and we have to take urgent action.

 

With the Clean Industrial Deal, we have identified the main hurdles that slow down these sectors.

We now need to speed up with the implementation.

Because investors want to know that if they invest, there will be demand for clean European products.

This is why lead markets must be at the heart of our action.

To spark a virtuous cycle.

Where both, supply and demand go up, and prices go down.

On the supply side, we will launch a Battery Booster package.

This will put EUR 1.8 billion up for equity to boost production in Europe.

Batteries are a key enabler of other clean tech – especially electric vehicles.

So this goes to the heart of our independence.

On the demand side, we must urgently drive demand for European industrial leadership in clean tech.

This is why we will introduce a “made in Europe” criteria in public procurement.

And when we invest in Global Gateway, for example, we set strong incentives for partners to buy European.

I am convinced: the future of clean tech will continue to be made in Europe.

But for that, we also need to make sure that our industry has the materials here in Europe.

And the only answer here is creating a truly circular economy.

So we need to move faster on the Circular Economy Act.

And move ahead in those sectors that are ready.

Finally, we need to keep up the speed.

So the Commission will propose an Industrial Accelerator Act for key strategic sectors and technologies.

In sum, when it comes to digital and clean tech: faster, smarter and more European.

 

Honourable Members,

Already today, low-carbon sources account for over 70% of our electricity.

We are global leaders in clean tech patents – better than the US, and racing with China.

We are catching up with US venture capital for clean tech – and way ahead of China.

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.

 

The science is crystal clear.

And the economic and security case is equally compelling.

In fact, this transformation is central to our push for independence.

Because it reduces our energy dependency.

Because circular production limits our strategic dependencies.

And because it creates frontrunner industries that can export the solutions to others.

When I speak to the Global South, from Africa to India to Central Asia, they are looking for solutions.

These are rapidly evolving markets and the jury is still out on who will dominate the markets.

We are the ones who can meet this growing demand for solutions.

But it is not a given.

This is why the Commission proposed the 2040 targets – ten years after the Paris Agreement.

I know that many people are concerned about the scale of what is ahead.

This is why the transition must support people and strengthen industry.

This also means massively boosting our public and private investment.

Creating lead markets for circular and clean products to deliver jobs and investments in Europe.

Ensuring a just transition for all – for example with the Social Climate Fund.

Securing the global level playing field, notably by promoting carbon pricing.

Europe must protect its industries.

They are doing the right thing to decarbonise.

And they should be rewarded and incentivised.

We otherwise risk relying on importing the steel that our carmakers need or the fertilisers that our farmers need.

We would be at the mercy of the price, volume and quality that others are willing and able to provide.

Take steel and other metals.

Global overcapacity is squeezing margins and leaving little incentive to pay a clean premium.

This makes it harder for Europe’s steel industry to invest in decarbonisation.

That is why the Commission will propose a new, long-term trade instrument to succeed the expiring steel safeguards.

Europe will always remain open.

We like competition.

But we will always protect our industry from unfair competition.

 

Honourable Members,

When we talk about competitiveness we talk about jobs.

We are talking about people and their livelihoods.

So the bottom line is that workers must be empowered if we are to have a competitive economy.

This is why we will propose a Quality Jobs Act.

To ensure that modern employment keeps pace with the modern economy.

And this is important because we know how hard times have been for so many families.

How costs have rocketed up.

How people are making sacrifices to make ends meet.

This is a matter of basic social justice.

This is why we urgently need an ambitious European Anti-Poverty Strategy.

We will lay out our plan to help eradicate poverty by 2050.

Backed up by a strong Child Guarantee to shield our children from poverty.

 

We will also put forward a series of packages on affordability and the cost of living.

Allow me to give you four telling examples.

The first is energy.

When energy costs rise, it is not just numbers on a bill.

It is every single part of people’s lives that is affected.

So at the height of the energy crisis in the last years, Europe acted.

And thanks to that common effort, we quickly managed to stabilise prices and secure supply.

We are now on the path to energy independence.

But energy bills are still a real source of anxiety for millions of Europeans.

And costs are still structurally high for industry.

We know what drove prices up: dependency on Russian fossil fuels.

So it is time to get rid of dirty Russian fossil fuels.

And we know, what brings prices down: clean homegrown energy.

We need to generate more homegrown renewables – with nuclear as a baseload.

But we also need to urgently modernise and invest in our infrastructure and our interconnectors.

This is why we will propose a new Grids Package to strengthen our grid infrastructure and speed up permitting.

And to go with that, I am presenting today a new initiative called Energy Highways.

We have identified eight critical bottlenecks in our energy infrastructure.

From the Øresund Strait to the Sicilian Canal.

We will now work to remove these bottlenecks one by one.

We will bring governments and utilities together, to address all outstanding issues.

Because Europeans need affordable energy right now.

 

Honourable Members,

A home is not just four walls and a roof.

It is safety, warmth, a place for family and friends.

It is belonging.

But for too many Europeans today, home has become a source of anxiety.

It can mean debt or uncertainty.

The numbers tell a painful truth.

House prices are up by more than 20% since 2015.

 

Building permits down by over 20% in five years.

This is more than a housing crisis.

It is a social crisis.

It tears at Europe’s social fabric.

It weakens our cohesion.

And it also threatens our competitiveness.

Nurses, teachers, and firemen cannot afford to live where they serve.

Students drop out because they cannot pay the rent.

Young people delay starting families.

That is why still this year – after receiving your input, we will present the first ever European Affordable Housing Plan.

To make housing more affordable, more sustainable, and of better quality.

It will be a European effort, anchored in local realities.

We need a radical overhaul of the way we tackle this issue.

We need to revise our State aid rules to enable housing support measures.

We need to make it much easier to build new houses and student residences.

And we will also propose a legal initiative on short-term rentals to tackle the remaining issues.

We need all of society, all lawmakers and all stakeholders to come together.

In this spirit, we will convene the first EU Housing Summit to ensure it is at the top of our agenda.

 

Honourable Members,

Housing is about dignity.

It is about fairness.

And it is about Europe’s future.

Eight years ago, the European Pillar of Social Rights made housing a social right in Europe.

It’s time to turn this promise into reality.

 

The third example I would like to highlight is cars.

It is a pillar of our economy and industry.

A European pride.

Millions of jobs depend on it.

Earlier this year, we gave the sector more flexibility to reach their 2025 targets.

This is working.

And with respect for technology neutrality, we are now preparing the 2035 review.

And millions of Europeans want to buy affordable European cars.

So we should also invest in small, affordable vehicles.

Both for the European market, but also to meet the surge in global demand.

This is why we will propose to work with industry on a new Small Affordable Cars initiative.

I believe Europe should have its own E-car.

E for environmental – clean, efficient and lightweight.

E for economical – affordable for people.

E for European – built here in Europe, with European supply chains.

Because we cannot let China and others conquer this market.

No matter what, the future is electric.

And Europe will be part of it.

The future of cars – and the cars of the future – must be made in Europe.

 

Honourable Members,

The final example I want to highlight is linked to food.

In Europe, we have access to high-quality food that our outstanding farmers and fishers produce at affordable prices.

They are also the custodians of our lands and oceans, our biodiversity.

The key to our food security.

But they are facing headwinds – from high input costs to red tape or unfair competition.

We are acting on all those fronts.

We have simplified the CAP – less paperwork and more trust.

We have ringfenced income support in the next MFF.

And made sure that funding can be topped up by national and regional envelopes.

But our farmers need fair competition and a level playing field.

This is essential.

This is why we have robust safeguards in our trade deal with Mercosur – backed up by funding if compensation is needed.

We also need to strengthen the position of farmers in the food chain.

For too long their hard work has not paid off as it should.

Farmers have a right to a fair price for their food – and a fair profit for their families.

We will review the implementation on our unfair trading practices legislation.

And take action wherever it is needed.

And I can also announce today that we will boost our promotion budget to launch a new “Buy European food” campaign.

Because we can proudly say that our European food is the best in the world.

 

Honourable Members,

When we talk about competitiveness and independence we must talk about our relations with the United States.

I have heard many things about the deal we agreed on over the summer.

I understand the initial reactions.

So allow me to be as clear I can.

Our trading relationship with the US is our most important.

We export over EUR 500 billion worth of goods to the US every year.

Millions of jobs depend on it.

As President of the Commission, I will never gamble with people’s jobs or livelihoods.

This is why we did a deal to keep market access for our industries.

And we ensured that Europe got the best possible deal out there.

We have put our companies at a relative advantage.

Because some of our direct competitors face much higher US tariffs.

Yes, their baseline may be lower.

But when you account for the exceptions that we secured and the additional rates which others have on top – we have the best agreement. Without any doubt.

And I want to be crystal clear on one point:

Whether on environmental or digital regulation.

We set our own standards.

We set our own regulations.

Europe will always decide for itself.

 

Honourable Members,

I do not believe in tariffs.

Tariffs are taxes.

But the deal provides crucial stability in our relations with the US at a time of grave global insecurity.

Think of the repercussions of a full-fledged trade war with the US.

Picture the chaos.

And then put that image next to the one from China just last week.

China flanked by the Leaders of Russia and North Korea.

Putin gloating about how Russia-China relations are at an unprecedented high.

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.

The first is that we need to double down on diversification and partnerships.

80% of our trade is with countries other than the US.

So we need to capitalise on new opportunities.

At a time when the global trading system is crumbling, we are securing the global rules through bilateral agreements.

Like with Mexico or Mercosur.

Or finalising negotiations on a historic deal with India by the end of this year.

 

We will also build a coalition of like-minded countries to reform the global trading system

– like the CPTPP.

Because trade allows us to strengthen our supply chains.

Open up markets.

Reduce dependencies.

Ultimately, this is about enhancing our economic security.

The world wants to Choose Europe.

And we need to do business with the world.

 

The second imperative is – for Europe to step up where others have stepped away.

Take research.

Science has no passport, gender, ethnicity or political colour.

It is one of the most valuable global goods.

This is why the Commission announced a Choose Europe package of EUR 500 million to attract and retain the best scientists and researchers.

And Europe must also take the lead on global health.

We are on the brink – or even at the start – of another global health crisis.

As a medical doctor by training, I am appalled by the disinformation that threatens global progress on everything from measles to polio.

And this is why today I can announce that the EU will head a new Global Health Resilience Initiative.

Because the world is looking to Europe – and Europe is ready to lead.

 

Honourable Members,

Europe’s independence is about protecting our freedoms.

The freedom to decide. To speak out. To move around a whole continent.

The freedom to vote. To love. To pray.

 

To live in a Union of equality.

Our democracy and the rule of law are the guarantors of those freedoms.

This is why we have done so much to strengthen our tools and step-up enforcement.

We built a new rule of law cycle that ensures that problems are detected early and solved through engagement.

We need an integrated annual cycle on the rule of law – a common rhythm, clear milestones, and contributions from all institutions.

And our focus must be to close the existing loopholes.

We have strengthened the link between funds and respect for the rule of law.

And with the next long-term budget we will go even further.

Respecting the rule of law is a must for EU funds. Now and in the future.

 

Our democracy is under attack.

The rise in information manipulation and disinformation is dividing our societies.

It is not only eroding trust in the truth – but also in democracy itself.

This is why we urgently need the European Democracy Shield.

We need more capacity to monitor and detect information manipulation and disinformation.

So we will set up a new European Centre for Democratic Resilience.

This will bring together all the expertise and capacity across Member States and neighbouring countries.

 

Honourable Members,

In some communities across Europe, traditional media are struggling.

In many rural areas, the days of going out for a local paper is a nostalgic memory.

This has created many news deserts where disinformation thrives.

And this is very dangerous for our democracy.

Because informed citizens who can trust what they read and hear are essential to keep those-in-power accountable.

And when independent media are dismantled or neutralised, our ability to monitor corruption and preserve democracy is severely weakened.

This is why the first step in an autocrat’s playbook is always to capture independent media.

Because this enables backsliding and corruption to happen in the dark.

So we need to do more to protect our media and independent press.

This is why we will launch a new Media Resilience Programme – it will support independent journalism and media literacy.

But we also need to invest to address some of the root causes of this trend.

This is why in the next budget, we have proposed to significantly boost funding for media.

We also need to enable private equity.

We will therefore use our tools to support independent and local media.

A free press is the backbone of any democracy.

And we will support Europe’s press to remain free.

 

Honourable Members,

The same goes for social media.

It has so many benefits for connecting people.

But I would like to raise one specific topic.

And this is the effects of giving our children unfettered access to social media.

As a mother of seven, and a grandmother of four, I feel the anxiety of parents who are doing their best to keep their children safe.

These parents worry that when their children pick up a phone they could be exposed to the wide-ranging dangers, simply with a scroll.

Online bullying.

Adult content.

Promoting self-harm.

And algorithms that prey on children’s vulnerabilities with the explicit purpose of creating addictions.

Too often mums and dads feel powerless and helpless.

That they are drowning against the tsunami of Big Tech flooding their family homes.

I strongly believe that parents, not algorithms, should be raising our children.

Their voice must be heard.

This is why today I am here to tell you that I am listening.

Just as in my days – we as a society – taught our children that they could not smoke, drink and watch adult content until a certain age.

I believe it is time we consider doing the same for social media.

Our friends in Australia are pioneering a social media restriction.

I am watching the implementation of their policy closely to see what next steps we can take here in Europe.

I will commission a panel of experts to advise me by the end of this year on the best approach for Europe.

We will approach this carefully and listen to everyone.

And in all of this work we will be guided by the need to empower parents and build a safer Europe for our children.

Because when it comes to our kids’ safety online, Europe believes in parents, not profits.

 

Honourable Members,

Our most important task is to protect our democracy.

But to do so we must also show that democracy offers solutions to people’s legitimate concerns.

And nowhere is that more evident than in the context of migration.

This is why we have proposed to treble funding for migration and border management in the next budget.

So that we can manage migration effectively and protect our external borders.

 

But more is clearly needed.

The people of Europe have shown they are willing to help those fleeing war and persecution.

But there is a growing sense of frustration, stemming from their impression that our rules are being ignored.

This is why we need to step up our efforts.

We need a system that is humane, but we must not be naïve about it.

We must be serious about returning rejected asylum seekers to their home countries.

 

We cannot have a situation where only 20 percent of those who are not allowed to stay actually leave Europe.

We therefore need to agree quickly on the Common European System for Returns.

We have no more time to lose.

 

And we must also ensure that we fully implement the Pact on Migration and Asylum as soon as it enters into force.

The pact is strict but fair.

And it will only work if everyone plays their part.

Member States from the north and the south, the east and the west.

 

Of course, we shall always fulfil our international obligations.

But we in Europe must be the ones to decide who comes to us and in what circumstances, not the people-smugglers and traffickers.

They are making millions upon millions with their cynical, false and fatal promises.

That is why we must break their business model.

It is true that numbers are falling but too many people are still trying to cross the border illegally and are dying on the way.

We must work together with social media platforms to put an end to the online organisation and online advertising of smuggling operations.

We must work more closely with airlines, especially on problematic routes such as those to Belarus.

And it is only by going after the money that we will be able to track down the criminal networks and cut off their sources of funding.

And we need a new system of sanctions specifically targeted at people smugglers and traffickers.

To freeze their assets.

To restrict their ability to move around.

To cut off their profits.

People smuggling is a horrible, criminal business, and no smuggler should be allowed to get away with it in Europe.

 

Honourable Members,

The point I want to make is simple.

If it matters to Europeans, it matters to Europe.

This is our enduring duty to deliver.

This summer, we all saw the pictures of Europe’s forests and villages on fire.

More than a million hectares were burned.

An area around a third of the size of Belgium.

The scale of the damage is enormous.

And we know it is not a one off.

Climate change is making each summer hotter, harsher, and more dangerous.

This is why we have to radically step up our efforts into climate resilience and adaptation, and nature-based solutions.

But we must also give ourselves the tools to respond.

This is why we will propose to create a new European firefighting hub based in Cyprus, which could also support our regional neighbours.

We know the difference our Civil Protection Mechanism can make.

Over the summer, 760 brave Europeans were sent to all corners of Europe.

Literally running towards the flames.

And I would like to conclude my speech with a tribute to them – the firefighters, pilots, crews.

Everyone who stepped up.

I would like to tell you the story of a group of 20 Greek rangers.

They are specialists in taming the fiercest of forest fires.

When the fires erupted in the Asturias region, Spain called for Europe’s support.

And Greece answered the call.

The flames were so vast the smoke could be seen from space.

But for five days the 20 Greek rangers stood shoulder to shoulder with their Spanish colleagues.

As the flames swept closer to the village of Genestoso, they fought day and night to contain the inferno.

And in the end – together – they tamed the fire, and the village was saved.

 

Honourable Members,

It is such an honour to welcome one of these heroes today.

The leader of the Greek team, Lieutenant Nikolaos Paisios.

Lieutenant, dear Nikolaos,

Your courage is an inspiration to us all.

For your strength, your commitment, and your extraordinary leadership:

ευχαριστώ – to you and your team of European heroes.

 

Honourable Members,

This is Europe as one community.

This is the Europe that I love.

This is the Europe that we must protect at all costs.

And we must do that together.

I want to work with this House and with all pro-European democratic forces to deliver for Europeans.

I am working on legislative packages to empower this pro-European majority.

And I am so delighted, dear Roberta, that we have managed to renew the Framework Agreement between the Commission and Parliament.

This will only strengthen our cooperation.

And it will be an enabler for us to work on the real reforms that are needed.

Because I support the right of initiative of the European Parliament.

And I believe that we need to move to qualified majority in some areas, for example in foreign policy.

It is time to break free from the shackles of unanimity.

The point is that we need to make sure our Union is faster and can deliver for Europeans.

Because this is how we can win this fight together.

To deliver Europe’s independence moments.

And let’s remember that we have always had to fight for our freedoms.

From the generation that fought hand to hand across our Continent.

To the underground press that kept the flame of freedom alive across Central and Eastern Europe during the Cold War.

Or the Forest Brothers in the Baltics who resisted Soviet oppression at every turn.

This struggle, this fight, is deeply engrained in who we are as Europeans.

80 years ago our Continent was hell on earth.

40 years ago our Continent was divided by a Wall.

But on each occasion, Europeans decided to fight for a better future.

To make itself whole – and to make the whole strong.

And this is what I will strive for every single day.

Long live Europe.