EU Commission President Ursula von der Leyen opened this year’s State of the Union address with the Charles Dickens quote, “It was the best of times, it was the worst of times.” The entire speech was framed by the reality of a world undergoing fundamental change and becoming increasingly “openly hostile,” resulting in the need for an independent and proactive Europe. This is Ursula von der Leyen’s sixth speech of this kind overall and the second of her current term in office.

The Single Market and reducing dependencies. Speed is of the essence

Von der Leyen named kickstarting the European economy as her number one priority. Europe has a large single market, but it remains too fragmented. The “One Europe, One Market” Roadmap is intended to remedy this. The reports by Draghi and Letta remain key points of reference in this regard. She placed particular emphasis on speed and “simplification.” Permits must be issued more quickly to secure investment in Europe and, consequently, the creation of new jobs. She did not directly address EU Inc. – which was prominently mentioned last year – but cited the 12 Omnibus packages already on the table as a key factor in reducing administrative costs and simplifying procedures for businesses. She then called on Member States to help with cutting red tape when implementing EU legislation and announced a pact against gold-plating.

In the context of structurally high energy prices, she emphasized the need to further expand “clean energy” and warned against further deindustrialisation of European heartlands. She noted that this is particularly important given the imbalance in European-Chinese trade relations – she spoke of a second “China shock.” The dialogue with China must now lead to results, and concrete actions to reduce existing dependencies must follow as well. In this regard, she mentioned the establishment of a European Corporation on Critical Raw Materials and the development of a Middle Corridor connecting the South Caucasus and Central Asia. Furthermore, she stated that a modern EU budget is required for this, and that “any modern budget needs new own resources.”

Social Europe. Not privileges, but rights

In the context of a social Europe, the adoption of the Quality Jobs Act, scheduled for the end of the year, is a positive development worth highlighting. It is intended to give workers a fair chance and address the risks posed by rapid technological change driven by AI. The challenges young people face when entering the labor market were also addressed.

The Commission President also noted the upcoming 10th anniversary of the European Pillar of Social Rights and announced a joint summit with European Council President António Costa to mark the occasion. She emphasized that Europe would continue to keep delivering on its promise. Against this backdrop, she further mentioned the European Care Deal, announced for 2027, and the “Right to Stay” initiative, and referred to the Affordable Housing Act. Care, housing, and the right to stay are not privileges, but rights. Furthermore, von der Leyen took a firm stance against any backsliding on women’s rights.

"C'est trop. Enough is enough." Social Media and Big Tech

One of the most concrete announcements of the speech was the EU Kids Act, for which a proposal was published the very next day. In the future, children under 13 will not be allowed access to social media, and those under 15 will only be able to use “mini-accounts” with limited features and time restrictions. The speech also confirmed the Digital Fairness Act, which is intended to provide improved protection against addictive design. Europe has the power to act – von der Leyen emphasized – and decides independently on its own rules, rather than letting “Big Tech” dictate them.

She described AI as a major tipping point of our time. The risks have become apparent not only through the Hugging Face incident. If even AI developers are expressing clear concerns, the EU must also act to ensure that AI’s vast potential can be harnessed safely and to guarantee human agency.

Climate as the second major challenge

The second tipping point for the future is tackling climate change. Von der Leyen called the summer of 2026 the “summer of truth” and also addressed wildfires, disappearing rivers, and heat-related deaths. She noted that these had been the hottest summer months on record, but they might be the coolest of the years to come. She urged compliance with climate targets and identified both mitigation and adaptation as necessary strategies, emphasizing that significant improvements are needed, particularly in crisis preparedness.

For this reason, the Commission will present a new framework to strengthen climate resilience as early as October 2026. Adaptation technologies – such as drought-resistant crops, flood protection, and energy-efficient cooling – represent a large market that the EU aims to lead in the future. A new initiative was also announced to ensure the security of the water supply.

Daring to think European

Europe’s defence capabilities were another key component of the speech, which included, among other things, the announcement of a European Security Council. Europe continues to advocate for a rules-based system, but can no longer rely exclusively on it. The Commission President cited strategic partnerships as the answer and surprised the audience with the announcement that she would seek “associated” EU membership for Canada.

She also emphasized the EU as a common home, built on non-negotiable shared values. But Europe, she said, is also a promise and an idea. To develop new visions for it and regain the ability to think European, von der Leyen announced a new Congress of Europe – nearly 70 years after the Treaties of Rome.

The speech from an employee perspective

Overall, the speech contained few concrete commitments. Serious commitments to a strong social Europe and a solution to the rising cost of living – the central concern of many Europeans – were missing from the speech, as ETUC General Secretary Esther Lynch noted. One positive aspect worth highlighting is the commitment to the European Pillar of Social Rights and the Quality Jobs Act, though these will ultimately be judged by their actual content. ÖGB and ETUC President Wolfgang Katzian also welcomed the continued implementation of the Pillar of Social Rights and the reaffirmation of the Quality Jobs Act, but he also criticized the pact against “gold-plating.” While there is nothing fundamentally wrong with administrative simplification, he noted that in the past it always came at the expense of workers. MEP Andreas Schieder (S&D) also considers the framework set by the upcoming Multiannual Financial Framework to be central.

From the single market to AI to defence and “simplification,” the message was above all one of urgency. For workers, however, the question is not only how fast Europe is moving, but also in which direction and whether good working conditions, social rights, and cohesion are advancing just as quickly. Perhaps von der Leyen can then open her next speech with another quote from Dickens: “I have been bent and broken, but – I hope – into a better shape.”

Additional Information

EU Commission: State of the Union 2026
EU Commission: State of the Union 2026 – Factsheet
ETUC: State of the Union: Quality Jobs Act confirmed, but Europe is still missing a job creation plan and measures to help with the cost-of-living crisis
ETUC via OTS: Katzian ad State of the Union address: Social Progress not to be jeopardized by reducing bureaucracy (german)
Euractiv: As it happened – Liveticker zur State of the Union
POLITICO: How did von der Leyen’s ‘independence moment’ hold up over 12 months?
POLITICO: How to write a State of the Union speech
AK EUROPA: One Europe, One Market. Where is the EU's new political roadmap heading
AK EUROPA: Digital Fairness Act – Adressing addictive design on TikTok, Instagram and similar platforms
AK WIEN, IHS: ADDICT – Assessment approaches for risk management of designs and practices on digital platforms that promote addictive behavior (german)