State of the European Union 2025: von der Leyen’s speech

On 10 September 2025, the European Commission President addressed the European Parliament in Strasbourg. The speech (which has been a staple of EU politics since 2010) is of high importance for EU institutions, as it seeks to set out the legislative and policy agenda for the year ahead. It also aims to situate the Union’s priorities within broader debates about Europe’s place in the world.
Below are some of the highlights of the speech that are of particular interest:
Defence
The Commission President announced a new programme called “Qualitative Military Edge”, which will support investment in the capabilities of the Ukrainian armed forces.
Ursula von der Leyen called for the creation of an “Eastern Flank Watch”, which would encompass increased surveillance through space-based equipment to track troop movements and investments in drones. This aligns with ambitions to develop credible and reactive European armed capabilities, ensuring the EU can defend its territory.
A roadmap will be unveiled at the next European Council meeting to clarify next steps on defence and to launch new projects.
Competitiveness and the Single Market
The simplification packages proposed by the Commission (also referred to as “omnibus laws”) aim to reduce paperwork and lead to less complex rules, cutting €8 billion a year in bureaucratic costs for European companies.
Military, mobility, and digital omnibus laws are currently being drafted.
The EU is preparing its “28th regime” and accelerating work on the Savings and Investments Union.
The EU will partner with private investors on a multi-billion-euro Scale-Up Europe Fund to prevent high-potential startups in key technologies, such as quantum computing, AI, and biotech, from leaving Europe, thereby enhancing its technological sovereignty.
A Single Market Roadmap to 2028 will be proposed to address gaps highlighted by the Letta Report, particularly in finance, energy, and telecoms.
Technology
The EU plans to massively invest in European AI Gigafactories.
The EU will join forces with the private sector, which has highlighted its commitments in the “European AI & Tech Declaration”.
A “Battery Booster Package” will be launched on the supply side, providing €1.8 billion in equity to boost production in Europe.
To stimulate demand, the EU plans to introduce a “Made in Europe” criterion in public procurement.
The EU will propose the “Industrial Accelerator Act” for key strategic sectors and technologies.
The EU is closely monitoring Australia’s approach to social media restrictions for children and will assess what solutions it can apply domestically.
International Trade
The recently achieved EU-US trade deal was presented as necessary to provide stability in EU-US relations “at a time of grave global insecurity”.
Von der Leyen emphasised the need for Europe to capitalise on new trade opportunities and to double down on diversification and partnerships.
The Commission plans to build a coalition of like-minded countries (similar to the CPTPP) to reform the global trading system and further enhance EU economic security.
Other Notable Points
The European Commission highlighted the importance of moving beyond unanimity requirements in certain areas (such as foreign policy) to speed up EU decision-making.
Von der Leyen expressed support for the European Parliament’s “right of initiative”, which would enable it to propose laws (a power currently held only by the Commission).
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