Ursula von der Leyen is preparing to deliver her sixth State of the Union address at the European Parliament in Strasbourg, two years after Mario Draghi warned of the "slow agony" facing Europe if decisive action was not taken to address the continent's competitiveness gap.
The speech, scheduled for Wednesday morning, is being awaited with particular interest given the mounting frustration in Brussels regarding the slow pace of implementation of the recommendations set out in the former European Central Bank president's landmark report. Von der Leyen's message will focus on the need for Europe to act with urgency to reverse its declining economic dynamism, while simultaneously addressing the challenges of the green transition, digital transformation and geopolitical instability.
Among the key themes expected to feature prominently are the deepening of the Economic and Monetary Union, with particular attention to the Savings and Investment Union, which Portuguese Commissioner Maria Luís Albuquerque has been tasked with steering. This initiative aims to channel private savings towards productive investments in the EU, a critical step towards closing the investment gap that Draghi identified as one of Europe's most pressing problems.
The address will also touch on proposals for reforming the EU's banking and pension sectors, measures to improve access to digital platforms for minors, and the bloc's strategy for navigating the ongoing trade tensions with the United States. With the new US administration's tariff policies creating uncertainty in transatlantic trade relations, von der Leyen is expected to reaffirm Europe's commitment to open markets while defending European interests.
Immigration, climate policy and continued support for Ukraine are also set to feature in the speech, which comes at a time when the EU is preparing for what promises to be a politically charged year, with elections scheduled in several major member states in 2027. The presence of Canadian Prime Minister Mark Carney as guest of honour underscores the EU's efforts to strengthen ties with key partners beyond the bloc in an increasingly fragmented global order.
