The European Union’s policy direction for the coming year, as well as a review of the Commission’s activities over the past twelve months, were presented to the European Parliament in Strasbourg by the President of the European Commission, Ursula von der Leyen, in her annual State of the Union (SOTEU) address.

“It was the best of times. It was the worst of times,” said von der Leyen, opening her highly anticipated speech with a reference to the English novelist. This is the opening line of Dickens’ novel *A Tale of Two Cities*—which refers to London and Paris during the French Revolution. He used this quote to suggest that we are living in revolutionary times, an era of “great opportunities” but also of “great dangers.”

A stronger, independent Europe is now emerging.

A Europe better able to defend itself than ever before.

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That is there for Europeans.

This is a Europe we can be so proud of ↓ https://t.co/kwoTX3l4Ud

— Ursula von der Leyen (@vonderleyen) September 16, 2026

“Let’s make Europe’s future electric”

Europe must aim for a share of clean energy that is “technologically neutral,” including more controversial energy sources such as biomethane and nuclear power, as well as renewable sources such as wind and solar power, von der Leyen told MEPs.

She noted that this is vital, as the crisis in the Strait of Hormuz is restricting energy supplies, adding 90 billion euros to the Union’s energy imports this year “without adding a single molecule of energy.”

To this end, the EU must also increase its production capacity from renewable energy sources sixfold and double the share of electricity in its energy mix by 2040, she emphasized, referring to the electrification target the EU had proposed before the summer.

“Let’s make Europe’s future electric. It’s imperative,” said the Commission President regarding energy costs.

“Revitalizing the European economy is the top priority.”

Europe must be prepared to make “clear fiscal choices” for its citizens, said European Commission President Ursula von der Leyen during her State of the Union address on Wednesday.

“Our economy has weathered the impact of the wars in the Middle East better than expected. And unemployment is at near-record lows. However, the pressures from higher energy prices and borrowing costs are being felt by citizens and businesses,” the President said.

“Clear fiscal decisions must be made to ensure fiscal sustainability while protecting investments. Therefore, revitalizing the European economy is our top priority,” von der Leyen added.

Europe Is Assuming Its Security Responsibilities

Von der Leyen emphatically stressed that, in the face of an increasingly hostile security environment, Europe is taking on its responsibilities and has increased its defense spending by 80% over the past five years.

“This is a Europe that stands in solidarity with one another,” she said, adding that Ukraine is also being supported in this struggle.

“Or when we defended Greenland when it was threatened,” she said. “Or when drones, hybrid attacks, or disinformation target our democracies.”

Von der Leyen compared the rise of nationalism and Euroskepticism to the threat posed by Putin or “the representatives and puppets of authoritarians.”

“Genuine concerns are being used as a weapon to sow discord among us. Sometimes from outside—and very often from within,” she warned.

“Whether it’s far-right nationalists or anti-Europeans, Russian interference or disinformation. The names may differ, but their goal is the same.”

“They scorn our values and want to destroy our European unity. So let’s not limit ourselves to simply resisting this, but let’s fight together for our European ideal,” he added.

17-billion-euro package to cut red tape

Europe must move faster and reduce bureaucracy through a package of simplifications being promoted by the European Commission.

“In today’s economy, speed is crucial. A permit or a form, a network connection or a funding decision. All of these can determine where an investment will be made. Where jobs will be created. “We need to move much faster,” said European Commission President Ursula von der Leyen during her State of the Union address on Wednesday.

“As you know, our 12 proposals as a whole reduce the administrative burden by approximately 17 billion euros per year,” von der Leyen added, referring to the European Commission’s simplification program.

We will use all means to ensure balance in our relations with China

The EU’s daily trade deficit of 1 billion euros with China means that “a second shock from China… is already here,” von der Leyen said just now, adding that negotiations to reduce the deficit “must now yield results.”

The EU is negotiating with China to see if it can persuade the economic giant to stop flooding Europe with cheaper products.

It is clear that von der Leyen does not want to stir up trouble before sending her Trade Commissioner to China next month for talks.

However, she used strong language. “We will use all the tools at our disposal to restore balance to our relations,” she said. “Words are good, but actions are better.”

Von der Leyen is expected to brief EU leaders at the summit on October 15 and 16 on the progress of talks with China.

European farmers are the best in the world

Von der Leyen did not miss the opportunity to praise European farmers as “the best in the world. And we will support them every step of the way.”

However, as expected, the Commission President announced very few legislative initiatives concerning the agriculture and food sectors. She praised farmers for rising to the challenge of an “endless summer” and hinted that proposals would be put forward to improve risk management, address the “insurance gap,” and ensure access to water for food production.

EU agricultural associations are closely monitoring the situation, as a particularly devastating summer has severely impacted agricultural production —and a potentially historic El Niño phenomenon threatens to bring extreme weather conditions next year as well.

Next month: a new framework for climate resilience

“Next month, we will present a new framework for climate resilience. We will identify the 100 most vulnerable regions in Europe. And we will assess the risks—as well as the extent to which they need to be addressed,” the Commission President noted, while 660,000 hectares were completely burned and approximately 12 million metric tons of crops were lost.

The EU will present yet another plan for water, the “Water Initiative,” as von der Leyen called it, in an effort to address water shortages following a summer of unprecedented droughts. It also aims to manage water-related risks in the agricultural sector, emphasizing its importance for industry and food security.

However, it is not clear whether this plan is intended to be enacted as a law or as yet another “strategy” with non-binding targets, similar to the Strategy for Water Resource Resilience presented by Brussels last year.

Von der Leyen highlighted the devastating effects of this summer’s wildfires and heat waves, which affected all of Europe and claimed the lives of thousands of people.

Her remarks come at a time when several public health experts have called on the World Health Organization to treat climate change as a public health emergency, public health emergency, similar to the Ebola virus or mpox.

Von der Leyen stated that Brussels will soon present a “European Heatwave Plan,” which will include improved early warning systems and health sector preparedness.

However, this is not enough to replace a specific strategy on health and climate, which many MEPs and environmental organizations have called on the Commission to develop.

“Alliance for the Future” with Canada

During her speech, attended in person by Prime Minister Mark Carney, the President of the European Commission announced a new, comprehensive partnership with Canada.

She pledged to “work in the field of smart manufacturing… to create a technology alliance… to integrate our defense industrial bases.” In addition, the two sides will “make the Arctic a flagship joint project. We will work in the fields of energy, critical minerals, and batteries.” In the fields of artificial intelligence, quantum technology, cybersecurity, and economic security.”

The partnership, he stated, “is not directed against anyone else.” “Europe and Canada believe in democracy,” he said.

Energy will be a key area of cooperation as the EU deepens its relations with Canada, von der Leyen told MEPs. She did not provide many details, but the two sides are already collaborating in the areas of nuclear energy, clean technologies, and reducing methane emissions.

Liquefied natural gas is another area with potential for closer cooperation. Earlier this year, Germany signed a 20-year agreement to purchase Canadian liquefied natural gas, although it will still take time for Canada to develop the necessary export capacity (setting aside environmental concerns).

Addressing Mark Carney, von der Leyen stated that she wished to work with him “to pave the way for Canada to become the first associated member of the EU.”

She hugged the prime minister and shook his hand, prompting yet another standing ovation. In a clear message to Donald Trump, von der Leyen stated: “This is not about working against anyone else, but about our collective strength.”

Alliances Outside Europe

The EU is forging closer ties with countries in the Caucasus and Central Asia in an effort to strengthen its trade alliances.

The Commission has picked up the pace, signing free trade agreements with India, Mexico, Australia, and other countries, amid the global trade war launched by U.S. President Donald Trump. Now, this effort includes a new connectivity project linking the South Caucasus and Central Asia, which von der Leyen boasted would “triple trade flows and drastically reduce transit times for goods by 2030.”

However, while other trade agreements have been concluded with countries that share the same values, this latest project will lead the EU to engage with authoritarian leaders such as Azerbaijani President Ilham Aliyev.

To achieve all of this, he said, he will organize a Regional Summit on Connectivity together with the Prime Minister of Bulgaria.

The EU Calls for a Slowdown in the Development of the Most Powerful AI Models

The European Union will support the technology industry’s efforts to slow the development of the most advanced and potentially most disruptive artificial intelligence applications, while strengthening cooperation with countries such as Canada and the United Kingdom on the security of AI systems.

European Commission President Ursula von der Leyen delivered this message during her annual “State of the Union” address to the European Parliament, where she referred both to the great potential of artificial intelligence and to the risks posed by its rapid development.

The Commission President emphasized that artificial intelligence can offer significant benefits to humanity, provided that the risks and opportunities of the technology are addressed in a balanced manner. However, she focused on so-called “frontier AI models”—that is, models at the cutting edge of technological development that push beyond the limits of current capabilities.

“As frontier models become more capable, these risks have intensified,” von der Leyen said, noting that the systems being developed could enable cyberattacks on a scale previously considered unimaginable.

As she noted, the most powerful artificial intelligence models may soon fall into the hands of adversaries with different views on the use of technology.

The Commission President also referred to recent incidents in which AI agents reportedly escaped from test environments and attempted autonomous attacks on other systemssystems, as occurred in the security breach involving OpenAI and Hugging Face in July.

The European Commission is seeking closer cooperation with countries that share the need for increased AI security. Von der Leyen stated that the EU will collaborate with Canada, the United Kingdom, and other partners in areas such as model evaluation, verification, early-warning systems, and AI security.

At the same time, she emphasized that the CEOs of leading technology companies themselves have called for a more cautious approach to the development of so-called self-training models. “If the people developing the technology are clear on this, then so must we be,” he said.

The EU already has one of the most comprehensive laws in the world on artificial intelligence, the AI Act, which grants the European Commission oversight powers over risk mitigation measures for the most advanced models.

Von der Leyen also announced that she will convene a discussion with leading artificial intelligence development labs, with the aim of examining how public authorities can support the industry’s efforts toward safer development of the most powerful models.

The Commission’s intervention comes as the global race to develop increasingly powerful AI systems accelerates, with governments and tech companies seeking a balance between innovation and managing potential risks.

New Mechanism to Counter Hybrid Threats

Ursula von der Leyen stated that peace in Europe is under threat as long as Russia’s war in Ukraine continues, warning that threats on European soil “are increasing every day.”

Referring to the attempted drone attack in Leipzig, the President of the European Commission asserted that it was “an attack using military equipment, carried out by Russian operatives on European soil.”

“It was not just an attack against a member state, but against our entire Union. And we will not allow it,” she emphasized during her State of the Union address to the European Parliament.

New Response Mechanism Beyond NATO

Von der Leyen emphasized that Europe needs “its own playbook for dealing with hybrid threats,” as there are incidents that do not rise to the level of an armed attack but constitute a clear threat to national security.

“We urgently need consensus on how to respond to specific incidents. Those that fall below the threshold of an armed attack but clearly threaten our security,” he said.

As he explained, a mechanism is needed that would operate in a manner complementary to NATO’s Article 4, which allows a member state—a member of the Alliance—to request emergency consultations when it considers its security to be threatened.

“When activated by a member state, all member states will be convened to coordinate a European response,” said the Commission President, noting that the goal is “to prevent further escalation and limit the consequences.”

Proposal for a European Security Council

The President of the European Commission went a step further, stating that a European Security Council must become a reality.

This new structure, she said, should include allies such as Ukraine, the United Kingdom, Norway, Canada, and other countries involved in addressing Europe’s new defense and security needs.

“The need is urgent. And the principle is simple: Europe’s security is indivisible,” von der Leyen said.

“Women are here to stay”

In her speech, the Commission President also addressed the protection of women’s rights, warning that there must be no return to times when women were treated as second-class citizens.

“Today, our fundamental values are being challenged. Some even want to roll back women’s rights,” she said.

“Women are here to stay. We will defend our rights and continue to stand up for our values every day,” she added.

European Initiative on Industrial Artificial Intelligence

Von der Leyen also announced that in November, the European Commission will invite governments, MEPs, and businesses to participate in a new European initiative on industrial artificial intelligence applications.

The initiative will focus on five strategic sectors: health, transportation, agri-food, advanced manufacturing, defense, and space.

“This is where the real value lies. And this is where Europe has significant advantages. We have world-class industries based on high-quality data,” he said.

He emphasized, however, that the goal is not to replace human decision-making, but to enhance it “in a European way.”

European Agreement on Care and Housing

The Commission President also announced the upcoming European Care Deal, aimed at addressing the challenges posed by demographic change.

At the same time, she referred to the first European legislative initiative on housing, which aims to address issues such as short-term leases and speculation in the real estate market.

“Care is not a privilege. Housing is not a privilege. They are rights,” she said.

Migration: “Emergency Framework” to Address Crises Such as the One in Ceuta

Ursula von der Leyen announced a new “European Emergency Response Framework,” which will be activated based on strictly defined criteria in the event of a sudden, large-scale influx of irregular migrants, as occurred in the Spanish exclave of Ceuta last July.

“The events of this summer show that our tools need to evolve—especially for emergency situations,” von der Leyen said, arguing that the EU needs the means to protect its borders, especially when “mass movements are organized and used as a weapon.”

The framework will allow for temporary flexibility in standard procedures, which, according to EU sources, could translate into a temporary suspension of the right to asylum.

The European Commission will strengthen Frontex, the EU’s border agency, “specifically to speed up the returns” of irregular migrants, von der Leyen said.

She pledged to triple Frontex’s staff to up to 30,000 employees by 2024. She now appears to be proposing a reform of the agency’s mission, assigning it a more proactive role in addressing irregular migration.

The Commission President stated that the agency will improve its early warning systems so that it can detect and predict large-scale migration movements, while also stepping up its cooperation with non-EU countries.

“We, the Europeans, decide who comes into our Union and under what conditions. Not the smugglers and traffickers,” she said.

The Hungarians “chose democracy, chose Europe” in the April elections

Ursula von der Leyen praised the results of the parliamentary elections in Hungary in her speech, noting that voters had brought Hungary back into the heart of the European Union.

“Nothing is inevitable. Just look at Hungary,” von der Leyen said.

“April 12 will remain in our memory for a long time. It was the day the people of Hungary took their future into their own hands. They chose democracy. They chose Europe. They brought Hungary back to where it belongs: at the heart of our Union.”

Hungary had previously faced economic sanctions due to concerns about systemic corruption and the rule of law. Orbán has also faced sharp criticism in Brussels for his close ties to Russia and his repeated obstruction of EU aid packages for Ukraine. Von der Leyen noted that Prime Minister Péter Mátyás has intensified efforts to combat corruption and the capture of the state.

“The years of regression have begun to be reversed. The fight against corruption and state capture is gaining momentum. There is real progress regarding fundamental rights and academic freedom. And now, billions of euros in investments have been unlocked in Hungary.”

In May, Magyar and von der Leyen agreed to release 16.4 billion euros from funds that had previously been frozen. If Hungary meets all the required criteria, the funds could reach Budapest later this year.

The “EU Kids Act” will restrict access to social media

The Commission will propose the “EU Kids Act” on Thursday, which takes a phased approach to protecting children online by banning access for users under the age of 13 and restricting access for children under the age of 15.

“We don’t have to accept addictive features. We don’t have to accept the fact that children are being drawn into increasingly extreme content. We do not have to accept the fact that photos of girls are being used to create sexualized images with the help of artificial intelligence,” said Ms. von der Leyen.

The Commission President also announced a reversal of the burden of proof, meaning that it will be up to technology platforms to prove that they have indeed made their services safe.

“Europe has the power to act. We set our own rules, not the big tech companies,” she added.

Source: Proto Thema