State of the Union 2025
STRATEGY2025-09-10
- Our proposals will cut EUR 8 billion a year of bureaucratic costs for European companies. A digital Euro for example will make it easier for companies and consumers alike. And further omnibuses are on their way – for example on military mobility or digital. For innovative companies, we are preparing the so-called 28th regime and speeding up the work on the Savings and Investments Union. Because we have many high potential startups in key technologies like quantum, AI or biotech. As they grow, the limited availability of risk capital forces them to turn to foreign investors. This is wealth and jobs going elsewhere. And it jeopardises our tech sovereignty. This is why the Commission will partner with private investors on a multi-billion-euro Scaleup Europe Fund. It will help make major investments in young, fast-growing companies in critical tech areas. Because we want the best of Europe to Choose Europe. We need clear political deadlines. This is why we will present a Single Market Roadmap to 2028. On capital, services, energy, telecoms, the 28th regime and the fifth freedom for knowledge and innovation. Only what gets measured, gets done.
- This will also support our investment in the technologies that will fuel our economy. Clean and digital. Take artificial intelligence. A European AI is essential for our future independence. It will help power our industries and our societies. From healthcare to defence. So – we will focus on the first key building blocks – that's from the Cloud and AI Development Act to the Quantum Sandbox. We are massively investing in European AI Gigafactories. They support our innovative start-ups to develop, train, and deploy their next-generation AI models. When we called on the private sector to join forces with us, the response was overwhelming. And later today I will meet CEOs from some of the largest European tech champions. They will hand over their European AI & Tech Declaration. This is their commitment to invest in Europe's tech sovereignty. And we must also take the same approach on clean tech – from steel to batteries. Europe's clean tech sector must stay in Europe – and we have to take urgent action.
- I am convinced: the future of clean tech will continue to be made in Europe. But for that, we also need to make sure that our industry has the materials here in Europe. And the only answer here is creating a truly circular economy. So we need to move faster on the Circular Economy Act. And move ahead in those sectors that are ready. Finally, we need to keep up the speed. So the Commission will propose an Industrial Accelerator Act for key strategic sectors and technologies. In sum, when it comes to digital and clean tech: faster, smarter and more European.
- This is why we will propose a new Grids Package to strengthen our grid infrastructure and speed up permitting. And to go with that, I am presenting today a new initiative called Energy Highways. We have identified eight critical bottlenecks in our energy infrastructure. From the Øresund Strait to the Sicilian Canal. We will now work to remove these bottlenecks one by one. We will bring governments and utilities together, to address all outstanding issues. Because Europeans need affordable energy right now.
- In some communities across Europe, traditional media are struggling. In many rural areas, the days of going out for a local paper is a nostalgic memory. This has created many news deserts where disinformation thrives. And this is very dangerous for our democracy. Because informed citizens who can trust what they read and hear are essential to keep those-in-power accountable. And when independent media are dismantled or neutralised, our ability to monitor corruption and preserve democracy is severely weakened. This is why the first step in an autocrat's playbook is always to capture independent media. Because this enables backsliding and corruption to happen in the dark. So we need to do more to protect our media and independent press. This is why we will launch a new Media Resilience Programme – it will support independent journalism and media literacy. But we also need to invest to address some of the root causes of this trend. This is why in the next budget, we have proposed to significantly boost funding for media. We also need to enable private equity. We will therefore use our tools to support independent and local media. A free press is the backbone of any democracy. And we will support Europe's press to remain free.
- Online bullying. Adult content. Promoting self-harm. And algorithms that prey on children's vulnerabilities with the explicit purpose of creating addictions. Too often mums and dads feel powerless and helpless. That they are drowning against the tsunami of Big Tech flooding their family homes. I strongly believe that parents, not algorithms, should be raising our children. Their voice must be heard. This is why today I am here to tell you that I am listening. Just as in my days – we as a society – taught our children that they could not smoke, drink and watch adult content until a certain age. I believe it is time we consider doing the same for social media. Our friends in Australia are pioneering a social media restriction. I am watching the implementation of their policy closely to see what next steps we can take here in Europe. I will commission a panel of experts to advise me by the end of this year on the best approach for Europe. We will approach this carefully and listen to everyone. And in all of this work we will be guided by the need to empower parents and build a safer Europe for our children. Because when it comes to our kids' safety online, Europe believes in parents, not profits.
- I am working on legislative packages to empower this pro-European majority. And I am so delighted, dear Roberta, that we have managed to renew the Framework Agreement between the Commission and Parliament. This will only strengthen our cooperation. And it will be an enabler for us to work on the real reforms that are needed. Because I support the right of initiative of the European Parliament. And I believe that we need to move to qualified majority in some areas, for example in foreign policy. It is time to break free from the shackles of unanimity.
Action items (10)
Cloud and AI Development Act
Planned for Q1 2026.This law will close Europe’s compute gap by tripling data-centre capacity within 5–7 years and meeting economy-wide needs by 2035, underpinning AI development and sovereign cloud services. It will harmonise cloud policy, set minimum criteria (including for a narrow set of highly critical use cases run on highly secure EU-based cloud), and streamline permitting, site designation and access to energy/water, ensuring geographically balanced rollout. The Act will spur R&I in resource-efficient data centres, enable targeted support consistent with State-aid rules, and complement AI Factories/Gigafactories and the Chips Act ecosystem.
Affordable Housing Plan
Planned for Q1 2026.The plan will deliver EU-level support to help national, regional and local authorities provide affordable, sustainable homes, while respecting subsidiarity. It addresses supply–demand imbalances, high building costs, permitting bottlenecks and skills shortages that drive up prices. Measures will mobilise investment (including an EIB platform), allow more cohesion funding for housing, adapt State-aid rules, and link renovations to the Social Climate Fund. The plan will accelerate permitting and procurement, improve rental-market functioning, and provide technical assistance so projects can scale quickly and fairly across regions and cities.
Choose Europe Package
Choose Europe will co-fund recruitment programmes that link MSCA grants to long-term positions, tackling precarity and drawing top researchers to Europe, including in AI. It sits within a wider talent-magnet approach: a new Visa Strategy to better use the Students & Researchers and Blue Card Directive, pilots of Multipurpose Legal Gateway Offices, and an EU Talent Pool plus a 2030 target to host at least 350,000 non-EU tertiary graduates annually. Complementary quantum actions include a European Quantum Talent Mobility Programme and a Pilot for Researchers-in-Residence in quantum startups. Together, this integrates R&I careers, mobility and immigration tools into one offer.
28th Regime
Planned for Q1 2026.It will create an optional, EU-wide corporate framework—digital by default—to let innovative firms set up, operate, and raise capital seamlessly across borders. The proposal may rely on TFEU Article 352 or a harmonised national form via Articles 50/114, with a progressive, modular design. It targets 48-hour incorporation and “once-only” data sharing via BRIS, EUID, and an EU Company Certificate, leveraging the European Business Wallet. Investment-friendly options under consideration include simpler capital increases, flexible share classes, and standard private-equity terms. Complementing the European Innovation Act, it cuts failure costs, fragmentation, and compliance burdens.
Circular Economy Act
Planned for Q3 2026.The Act will create a true Single Market for waste and secondary raw materials, boosting supply and demand for quality recyclates at competitive prices. It will harmonise end-of-waste criteria, simplify and expand extended producer responsibility (including a one-stop producer registry), and revise e-waste rules to recover critical materials, while aligning with the Ecodesign for Sustainable Products framework. Public procurement criteria, incentives for scrap use, and digitalised demolition permits will accelerate circular design and recycling. Strong enforcement—including for e-commerce channels—will ensure compliance.
Single Market Roadmap to 2028
Planned for Q1 2026.The Commission will set milestones to finish the Single Market where it matters most (i.e. capital, services, energy and telecoms) while advancing a 28th regime and a ‘fifth freedom’ for knowledge and innovation. The roadmap will tackle the “Terrible Ten” barriers, codify digital-by-default procedures, and use the Competitiveness Coordination Tool to align national reforms and EU investment. A delivery scoreboard will track progress, backed by faster infringement action and “once-only” data sharing for firms. Measures include deepening the Capital Markets/Savings & Investment Union, grid and interconnector build-out, the Digital Networks Act, and service-sector opening, turning commitments into measurable outcomes.
European Centre for Democratic Resilience
Planned for 2026.The Centre will be the operational backbone of the European Democracy Shield, uniting national capabilities to detect, analyse and attribute foreign information manipulation and interference (FIMI). It will pool open-source intelligence, media forensics and platform signals, provide rapid alerts and incident-response templates, and coordinate joint attribution with partners. The Centre will convene Member States and neighbouring countries, standardise methodologies, and channel support to independent media and media-literacy initiatives. By closing gaps between monitoring, policy action and sanctions, it will strengthen deterrence, help protect elections and debate, and build a European capacity against hybrid threats.
European Democracy Shield
Planned for Q4 2025.It will harden democratic resilience by combining early detection of foreign information manipulation, coordinated analysis and rapid response across the Union. A new European Centre for Democratic Resilience will pool national expertise and capacities as the hub for monitoring, attribution and joint action with partners. The Shield will leverage the EU’s FIMI toolbox and the Digital Services Act, expand media- and digital-literacy efforts, and strengthen crisis communication to counter disinformation systematically. It complements a forthcoming Media Resilience Programme supporting independent journalism, and is anchored in upgrades to EU internal-security governance. Work will also address harmful social-media design and youth well-being through expert advice on safeguards and enforcement.
Media Resilience Programme
Planned for 2026.The Commission will launch a Media Resilience Programme to shore up independent journalism and fight “news deserts.” It will finance local and investigative outlets, cross-border collaborations, safety of journalists, and media literacy, with a budget uplift in the next MFF. The programme will also mobilise private capital (using EU guarantees and blended-finance tools) to sustain viable business models for media and digital transition. It will work with the European Democracy Shield and the European Centre for Democratic Resilience to detect and counter disinformation and foreign interference, while strengthening pluralism, transparency, and citizens’ access to trustworthy information across EU languages.
Strategic EU-India Agenda
Europe have tabled a Strategic EU–India Agenda that elevates the partnership across five pillars: prosperity, technology, security, connectivity and enablers. It prioritises concluding an FTA and an Investment Protection Agreement, alongside Global Gateway investments and supply-chain de-risking via the EU–India TTC (chips, solar, APIs). It deepens digital cooperation (e.g. trusted data flows, secure 5G/6G and interoperable digital public infrastructures) and expands joint R&I in AI, HPC/quantum and space. A Security and Defence Partnership with a Security of Information Agreement will underpin maritime, cyber and hybrid resilience. Delivery will be steered by an annual summit, upgraded TTC, and an EU–India Business Forum.