Today in Strasbourg, European Commission President Ursula von der Leyen delivered the 2025 State of the Union (SOTEU) address, framing Europe as being “in a fight” to defend peace, democracy, and the EU’s ability to “decide for itself” on a number of important issues, from tech regulation to energy policy and raw materials. The Commission President announced a number of incoming new initiatives, indicating that the year ahead will be crucial for the EU to assert itself in the world, as this “must be Europe’s Independence Moment.”
Ten months into her second term – and delivering her first SOTEU under this term – she faced an at times hostile European Parliament, with Members of the European Parliament (MEPs) being particularly vocal about her the EU-US trade deal that she tried to defend as being the “best possible out there.” MEPs have been skeptical that the deal really defends the EU’s interests without undermining EU tech regulation, but von der Leyen was adamant that “we set our own regulation”, whether that is on environmental or digital matters.
After spending much of her opening remarks on Ukraine and Gaza, she then covered the EU’s need for a competitiveness push, with the President flagging in particular a “Made in Europe” preference in public procurement and use of Global Gateway to bolster European supply chains. Of particular importance for the digital and tech sectors, her speech set out the EU’s needs:
- On tech: The Commission will table an EU Cloud & AI Development Act and further omnibus packages to simplify digital rules, alongside a “28th regime” (a new legal regime under which it will be easier for companies to do business in the EU) and a European Innovation Act to ease cross-border scaling.
- On child safety: In her address, von der Leyen underlined that child online safety would be a priority – stressing the need to empower parents over the profits of Big Tech. She referenced Australia’s under-16 model and confirmed that a panel of experts will be commissioned before the end of the year to advise on the best approach for Europe. The President says she is willing and open to “listening” to all voices in this debate.
- On health: For the first time this mandate, health is foregrounded via a Global Health Resilience Initiative, with the EU signaling leadership on preparedness and system resilience in future crises. While some MEPs groaned at the mention of health policy, von der Leyen set out her credentials as a qualified Doctor to demonstrate she knows what she is talking about. The rollout of the European Health Data Space was not specifically mentioned but will be a key part of the digitalization of health policy.
- On trade & procurement: We can expect a new “Made in Europe” criterion in public procurement, and stronger Global Gateway incentives for partners to buy European. Non-EU companies need to be aware of these potential changes.
- On competitiveness: No dates were given, but there shall be a ‘Single Market Roadmap to 2028’, an Industrial Accelerator Act, and a European Grids Package that will seek to move the EU away from imported supplies of energy, unlock capital and speed up permitting. She attempted to bring the S&D Group onside by setting out the need for an Affordable Housing Plan that will include short-term rentals being once again under the microscope, while she spoke of her vision for all Europeans to be able to afford an electric vehicle, via a ‘Small Affordable Cars Initiative.’ MEPs, quite predictably, scoffed at this notion.
In von der Leyen’s very first SOTEU speech in 2019, she spoke of the Green Deal being Europe’s “man on the moon moment.” While there was no such rhetoric this time, and while speech will not go down in history as one of the greatest, she was clear on her vision for the EU, – which is, at least for now – an EU that is able to defend itself, supply itself and where EU sovereignty will be at the center of all policy-making going forward.
Contact us
Stay ahead of the uncertainty
If you would like to learn what impact the EU’s future outlook could have for your business, or how you can prepare for it, please contact Hilary Hudson at [email protected].
