‘Europe is in a fight,’ European Commission President Ursula von der Leyen declared as she opened her2025 State of the Union speech . Addressing the European Parliament in Strasbourg, von der Leyen noted that ‘Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe.’ In response, she argued for Europe’s ‘Independence Moment’ – a call for strategic autonomy.
One of the central pillars of her plan? A major push to invest in digital and clean technologies. The EU plans measures to support businesses and innovation, including a digital Euro and an upcoming omnibus on digital. Many European startups in key technologies like quantum, AI, and biotech seek foreign investment, which jeopardises the EU’s tech sovereignty. In response, the Commission will launch a multi-billion-euro Scaleup Europe Fund with private partners.
The Single Market remains incomplete, von der Leyen noted, mostly in three domains: finance, energy, and telecommunications. A Single Market Roadmap to 2028 will be presented, which will provide clear political deadlines.
Standing out in the speech was von der Leyen’s defence of Europe’s right to set its own standards and regulations. The assertion came right after her defence of the US-EU trade deal, making it a direct response to the mounting pressure and tariff threats from the US administration.
Key initiatives of ‘a European AI’ include the Cloud and AI Development Act, the Quantum Sandbox, and the creation of European AI Gigafactories to help startups develop, train, and deploy next-generation AI models. Additionally, CEOs of Europe’s leading tech companies presented their European AI & Tech Declaration, pledging to invest in and strengthen Europe’s tech sovereignty.
Australia’s pioneering social media restrictions were mentioned as a model under observation, indicating that Europe could adopt a similar approach. To ensure a well-informed and balanced policy, plans to commission a panel of experts by the end of the year to advise on the best strategies for Europe were announced.
The bet is that a potent mix of massive investment, streamlined regulation, and a unified public-private front can finally stop Europe from playing catch-up in the global economic race.