State of the Union 2025 - Headlining the Speech of President Ursula von der Leyen

On 10 September 2025, the President of the European Commission gave her State of the Union address in the European Parliament (Strasbourg). This has become an annually revolving tradition of presenting the state of play, the important issues facing Europeans during the year ahead and how the European Commission proposes to solve them. In this context, also new legislation or policies on the EU level are suggested.

Flanked by the European flag (blue with 12 golden stars), President von der Leyen presented her speech ‘Check against delivery’. Traditionally, the speech was mainly in English, with some passages in French and German.

The President calls on the European institutions and Member States to stand united in facing the stormy challenges of today and to fight for an intact continent and a free and independent Europe. This must be Europe’s Independence Moment. Unsurprisingly, von der Leyen focused on geopolitics in the first part of her address (Russia, Ukraine, strategic support for Eastern Europe, also with a view to the next reunification of Europe, new joint defence projects, Israel). The President then goes on to address many other policy areas (economy, competitiveness, research and innovation, etc.). A little later, she also discusses relations with the US (including customs agreements) and efforts to diversify and establish trade partnerships (Mexico, Mercosur, transatlantic partnership CPTPP). The aim is to reduce dependencies and strengthen Europe's economic security. The topics of global health, democracy and the rule of law, disinformation, support for independent and local media, migration and border management are also addressed.

Below, I summarise some of the President's key statements that are likely to be of particular interest to businesses with regard to European economic policy:

• Investment in digital and clean tech
• Future Competitiveness Fund
• Doubling of funds for ‘Horizon Europe’ (research and innovation programme)
• Capitalisation/investment: Launch of a Scaleup Europe Fund together with private investors
• Simplifications/less bureaucracy (keyword: omnibus packages)
• Creation of a uniform, simple and EU-wide harmonised legal framework for the establishment and operation of innovative companies (so-called 28th regime) as an optional alternative to national regulations
• Further strengthening of the internal market, including in the areas of capital, services, energy, telecommunications, knowledge and innovation
• Introduction of the digital Euro
• Strengthening the Savings and Investments Union
• Strengthening European AI capabilities (investment in AI Gigafactories, new legislation, etc.)
• Implementation of the Clean Industrial Deal, boost to battery production in Europe, introduction of a ‘Made in Europe’ criteria in public procurement, new legislation on industrial acceleration for key strategic sectors and technologies (clean, digital)
• At the same time, the President wants to stay the course on climate and environmental goals and massively increase public and private investment in these areas.

To protect the European industry from unfair competition, a new, long-term trade instrument will be proposed (to succeed the expiring steel safeguard measures).

Energy costs shall be reduced by phasing out Russian fossil fuels and generating more homegrown renewables (and nuclear energy as a baseload). This must be accompanied by improvements to the grid infrastructure and faster permitting procedures. There are plans for a new initiative for ‘energy highways’ to eliminate critical bottlenecks in the European energy infrastructure.

The President also wants to present a European plan for affordable (and sustainable and high-quality) housing in 2025. EU State aid rules shall be revised, the construction of new housing made easier and the problems with short-term rentals tackled.

The future of cars – and the cars of the future – must be made in Europe. The regulatory framework will be reviewed with respect for technology neutrality. The President does not understand the E-car in the sense of electric, but more generally as environmental (clean, efficient, lightweight), economical (affordable for people) and European (production and supply chains in Europe).

Finally, European agriculture shall be supported (e.g. by increasing the promotion budget for a new ‘Buy European Food’ campaign).

At the end of her speech, the President recalls the struggle for independence (during the Second World War and the Cold War times when the Continent was divided by a Wall) and that Europeans decided to fight for a better future. To make itself whoe – and to make the whole strong.

The State of the Union address is available in the original and in the respective language versions (download here).

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“Long live Europe.” This was (once again) the end of her speech and should also be good for my task here.

Please note: This blog is for general information purposes only and in no way constitutes legal advice from Binder Grösswang Rechtsanwälte GmbH. The blog cannot replace individual legal advice. Binder Grösswang Rechtsanwälte GmbH accepts no liability of any kind for the content and accuracy of the blog.