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‘Europe has chosen to forge its own path’: Von der Leyen sets out agenda for the year ahead

European Commission President Ursula von der Leyen at the podium Photographer: Dati Bendo © European Union

European Commission President Ursula von der Leyen used her State of the Union address on Wednesday (16 September) to make the case for a more independent Europe, confronting war, economic competition, AI disruption and climate change — while proposing Canada become the EU’s first associate member.

Opening her #SOTEU speech with Charles Dickens’ “best of times, worst of times”, von der Leyen described a Union stronger but also more exposed to external threats.

“The state of our Union is the strongest it has ever been,” she said, while acknowledging it could feel “as precarious as it has ever been”. “Europe has chosen to forge its own path. And a stronger, independent Europe is now emerging.”

Competitiveness and energy

Von der Leyen called kickstarting Europe’s economy her “number one priority”, promising faster permitting, less red tape and further integration of the Single Market.

The Commission will propose a new Banking Package and create a European Corporation on Critical Raw Materials to secure supplies needed for chips, batteries, clean technology and defence.

With high energy costs weighing on European industry, von der Leyen called for faster electrification and investment in grids, renewables and nuclear power to reduce dependence on imported fossil fuels.

Climate after a 'summer of truth'

After a summer of fires, drought and extreme heat, von der Leyen promised a climate resilience framework focused on 100 of Europe’s most vulnerable territories, alongside a Climate Insurance Alliance, European Heatwave Plan and Water Initiative.

She also floated a future European Firefighting Fleet, declaring that Europe “can, must and will stay the course” on its climate targets.

AI: Opportunity and threat

AI was presented as both an economic opportunity and an emerging security threat. Von der Leyen warned that advanced models could enable hacking “on a level we never thought possible” and pledged closer cooperation with Canada, the UK and others on AI security.

At the same time, Europe will expand computing capacity and push AI into health, transport, agriculture, manufacturing, defence and space. “Above all, we want AI with human agency,” she said.

Jobs, housing and social rights

The Commission plans a Quality Jobs Act before the end of the year and a European Care Deal, alongside measures tackling housing pressures.

Von der Leyen said technological change must benefit workers, while strongly defending women’s rights and Europe’s social model.

PHOTO  European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney at the podium Photographer: Dati Bendo © European Union

Canada moves closer

One of the biggest surprises came with Canadian Prime Minister Mark Carney in the chamber.

Von der Leyen proposed an “Alliance for the Future” spanning technology, defence, energy, critical minerals, AI and the Arctic — before going further.

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” she told Carney. “We share one ocean, one set of values, one way of seeing the world.”

Security, defence and Ukraine

With drone incursions, cyberattacks and sabotage raising security concerns inside the EU, von der Leyen proposed a new European security strategy and an Emergency Security Protocol for incidents falling below the threshold of armed aggression.

She also wants to establish a European Security Council and strengthen joint European defence capabilities.

Ukraine faces what von der Leyen called the “toughest winter of the war”. She promised humanitarian and energy support, stronger air defences and deeper defence-industrial cooperation with Kyiv.

Borders, democracy and children online

The Commission will propose an Emergency Response Framework for exceptional migration crises and strengthen Frontex, while launching a Mediterranean Youth Skills and Jobs initiative.

Von der Leyen also announced an EU KIDS ACT, including no social media for under-13s and restrictions for children under 15, followed by a broader Digital Fairness Act.

Political groups draw battle lines

EPP leader Manfred Weber backed the focus on AI, defence and competitiveness but pushed against restrictive climate policies. “Climate change is a reality,” he said, arguing Europe needed “innovation and not bans.”

S&D leader Iratxe García Pérez demanded that von der Leyen turn “words into action”, backing climate investment, housing and worker protections while warning that simplification must not become deregulation.

Renew Europe leader Valérie Hayer made a pointed appeal for the Parliament’s pro-European majority, as the EPP has increasingly worked with parties further to the right on some legislation. “There’s only one possible majority. It’s our pro-European majority,” she said. “We need to do more. We need more Europe, and we need it more quickly.”

Greens/EFA co-chair Terry Reintke accused EU leaders of failing to respond urgently enough to extreme heat and wildfires. “We are in the middle of a climate emergency,” she said, demanding stronger Green Deal implementation while insisting: “We are not powerless. Europe is strong, and Europe can be even stronger.”

ECR co-chair Patryk Jaki struck a sharply different note, attacking the Commission over bureaucracy, energy costs and industrial competitiveness. Europe, he argued, was “as weak as it’s ever been.”

Von der Leyen closed on the central theme running through the speech: European sovereignty in an increasingly hostile world.

“The fate of Europe,” she said, “must remain in the hands of Europeans.”

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EU welcomes Cambodia to WTO appeal arrangement

The EU welcomes Cambodia’s decision to join the Multi-party Interim Appeal Arbitration Arrangement (MPIA) for WTO members, contributing to efforts to uphold a rules-based multilateral trading system. 

With Cambodia’s participation, the MPIA now covers 62 World Trade Organization (WTO) members and 60.4% of world trade.  

The MPIA brings together participants from all continents and at different levels of development, united by a shared commitment to upholding the rules-based trading system. 

The MPIA preserves the right to appeal in trade disputes among participating WTO members, at a time when the WTO’s Appellate Body remains non-functioning. It helps ensure that disputes can continue to be resolved in an orderly and binding manner, avoiding appeals 'into the void'. 

“I welcome Cambodia to the MPIA. The arrangement plays an important role in upholding the rules-based trading system. Each new participant helps reinforce the predictability, stability and credibility of global trade rules. I encourage other WTO members to join the MPIA,” said EU Trade and Economic Security Commissioner Maroš Šefčovič. 

Background 

The MPIA was established in 2020 and has proven its effectiveness in many WTO disputes.  

Under the MPIA, appeals are heard by arbitrators randomly selected from a pool of 10 standing appeal arbitrators set up by the participating WTO members. These arbitrators are persons of recognised authority, with demonstrated expertise in law, international trade and WTO agreements.  

The MPIA is open to all WTO members as a practical tool for appeal arbitration, pending the restoration of a reformed and fully functioning WTO dispute settlement system. 

As of 1 June 2025, the MPIA has an updated pool of appeal arbitrators to ensure that appeals continue to be heard by independent arbitrators of the highest calibre. 

At the WTO Ministerial Conference that took place earlier this year, MPIA ministers stressed the importance of the MPIA for the security and predictability of the multilateral trading system.  

The current MPIA participants are Australia, Barbados, Benin, Brazil, Cambodia, Canada, China, Chile, Colombia, Costa Rica, Ecuador, the European Union (and its Member States), Guatemala, Hong Kong (China), Iceland, Japan, Liechtenstein, Macao (China), Malaysia, Mexico, Moldova, Montenegro, New Zealand, Nicaragua, Norway, Pakistan, Paraguay, Peru, the Philippines, Singapore, Switzerland, Ukraine, the United Kingdom, Uruguay and Vietnam.

More information

MC14: Supporting the rules-based multilateral trading system: the role of the MPIA

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