European Commission | From Promise to Progress: State of the Union 2025

Last year, almost 200 million Europeans cast their ballots to elect their representatives in the European Parliament. It was the moment of Europe’s choice. Turnout was the highest it had been in 20 years. This is proof that Europeans care about our Union and expect it to deliver on the challenges ahead. And this is the mission that the new Commission has taken on  – to deliver on our citizens’ expectations and aspirations. 

The world around us is more conflictual and competitive than it has been in the last decades. The events since the beginning of the year underscore a new geopolitical reality: the age of great-power competition is back. The security architecture that Europe was able to rely on since the end of the Cold War can no longer be taken for granted.

Economic competition has grown harsher and is increasingly tied to security. The energy crisis triggered by Russia’s invasion of Ukraine illustrates this, as do today’s power struggles over supply chains and trade. This directly affects European companies, which call for protection from unfair practices and a supportive business environment. Europe is working to strengthen its competitiveness in traditional industries while becoming a leading hub for clean tech and artificial intelligence (AI).

People across our Union want action to address inflation, the cost of living, energy prices, the housing crisis and the growing impact of extreme weather events.

These are the main challenges that the new von der Leyen Commission has been tackling since the start of the mandate on 1 December 2024. We have worked for a strong and competitive Europe, in line with President von der Leyen’s political guidelines for 2024–2029.

A competitive and prosperous Union

In an increasingly volatile global environment, Europe’s work to win a leading position in the economy of tomorrow begins first and foremost at home. We have laid out a competitiveness compass, which points to a modern, decarbonised economy.

We are listening to businesses and have started to simplify rules to make it easier for them to operate in the EU, while maintaining our social and climate goals. We are encouraging scientists, businesses and the world’s innovators to ‘Choose Europe’ and fuel its growth.

We have taken steps to ensure energy independence and affordability. We are diversifying our trade partnerships and reducing excessive dependencies. We are investing in skills, in housing and in the social pillar of our social market economy. And we are working to secure the future of our economy and our industry – in tech, AI, agriculture, the automotive sector, pharmaceuticals, defence and more.

A secure Union ready to defend itself

A key precondition for prosperity is peace and security on our continent. Europe has understood that it must assume more responsibility for its own defence. To that end, we have proposed a Readiness 2030 plan to help boost national defence spending and close our military capability gaps.

With our Readiness 2030 initiatives, we are facilitating additional investment of up to €800 billion by Member States over the next four years. Sixteen Member States have requested the activation of the national escape clause to raise their defence budgets. In just four months, we created SAFE (Security Action for Europe), a new financial instrument with €150 billion in loans for joint defence procurement.

Europe’s first security policy is its unity. Enlargement is a strategic investment in Europe’s long-term peace, stability and prosperity. Countries and people in the Western Balkans, Moldova and Ukraine have chosen to become part of the EU. While enlargement remains a merit-based process, we are committed to giving them our full support and assistance.

We continue to stand firmly by Ukrainians in the face of Russia’s war of aggression, providing political, financial and military support. It has been more than three years since Putin launched his full-scale war of aggression against Ukraine. The Ukrainian people have shown heroic resistance and courage as they continue to fight for their right to choose their own destiny.

Their freedom is Europe’s freedom. The war in Ukraine is Europe’s top security crisis, which is why we have not wavered in our support. Because only a just and lasting peace in Ukraine can guarantee Europe’s security.

A reliable global partner

We have taken concrete steps to reduce unhealthy dependencies and strengthen Europe’s independence. We have reinforced our network of reliable partners and we have made of Europe a pole of stability in the world.

Partners across the globe – from the United Kingdom to India, and from South-East Asia to South America – are turning to the EU as a predictable, reliable and fair partner with which to do business. 

Europe has taken abroad the solidarity we practice at home. The EU is the largest provider of international aid in the world and a leading humanitarian donor. This role has become more relevant as other donors have scaled down their humanitarian funding. We know that in many places around the world, the EU’s support makes the difference between life and death.

In May, at the European Humanitarian Forum, the Commission pledged €2.3 billion for 2025 to address the most urgent humanitarian needs caused by the conflicts in Ukraine, Gaza and Sudan.

A democratic Europe with a budget fit for the future

The world changes, so must we.

Europe is switching gears to match the challenges of today and tomorrow. The Commission is determined to equip our Union with the tools it will need in the years to come. At the same time, adapting does not mean forsaking our values and the pillars upon which the EU has been built: peace, freedom, democracy and the rule of law.

That is why we have proposed a modernised long-term EU budget for the cycle that starts in 2028. It will be more ambitious, more flexible, allowing us to react better to emerging crises, more consistent with our priorities and simpler for people and businesses to benefit from it. It will be a safeguard for the rule of law in our European Union.

We also recognise that crises are now the norm. When they hit, we must be prepared to act quickly and effectively. To that end, the new budget will boost our preparedness union with a new Union Civil Protection Mechanism that combines EU actions on civil protection and health emergency preparedness. Moreover, a crisis mechanism will make €400 billion in loans available to Member States for when emergencies inevitably do arise.

Looking ahead

This is a crucial moment in European history. Now more than ever, Europe must focus on its own strengths. But Europe has always shown that when it stands together it can overcome any crisis.

It is time to make the choice of strength, the choice of unity, the choice of Europe.

Compliments of the European Commission