Vulcan View: The latest EU developments 8 September – 12 September

Commission President von der Leyen calls for Europe’s “Independence Moment”

On Wednesday (10 September), European Commission President Ursula von der Leyen delivered the State of the European Union address (SOTEU) in the European Parliament in Strasbourg.

In this year’s address, President von der Leyen presented a stark appraisal of a world in transition, declaring that Europe is in a “fight for its future.” Against a backdrop of global instability and geopolitical shifts, Ms. von der Leyen argued that this must be Europe’s “Independence Moment”, a time to assert its sovereignty, secure its future, and determine its own destiny. She stressed that the EU needs to take care of its own defence and security, to control the technologies and energies that power its economies, and to defend the democratic model and social market that underpin its societies.

Security and Defence

Ms. von der Leyen began her speech by reaffirming the EU’s unwavering support for Ukraine and condemning Russia’s continued aggression. She also outlined the 19th sanctions package against Russia and increased military support for Ukraine.

A central theme of the speech was the urgent need for stronger European defence. The President announced that the EU must be ready to take responsibility for its own security, complementing NATO. She highlighted progress in the European Defence Union, including the Readiness 2030 and SAFE programmes, and called for investment in a “drone wall” shared with Ukraine and real-time space surveillance. Finally, the European Commission will present a clear roadmap for defence, including a European Defence Semester.

Competitiveness

President von der Leyen proposed a “Made in Europe” criteria for public procurement, restricting some tenders to European companies. Moreover, she announced a “Single Market Roadmap” proposal to break down internal barriers by 2028, focusing on capital, services, energy and telecom. She also backed the adoption of a new 28th legal regime to support innovative companies and advanced plans for a Savings and Investments Union (SIA). Beyond the Single Market, she highlighted initiatives on affordable housing, a European “Small Affordable Cars” scheme for EVs, and measures to secure fair incomes for farmers.
She also highlighted some proposals that the European Commission had already announced, such as the European Competitiveness Fund and doubling Horizon Europe’s funding.

Trade

Referring to the US-EU trade deal reached in July, Ms. von der Leyen defended the recent US-EU trade deal as crucial for avoiding a trade war and maintaining stability. She simultaneously stressed the need to safeguard Europe’s digital and regulatory autonomy from external pressures.
Additionally, she stressed the need to diversify economic ties, to build new partnerships and channels of demand for European industry, citing Mercosur and Mexico as examples of diversification. Finally, she called for concerted work with like-minded partners, such as CPTPP countries, to reform the global trading system so it better reflects shared rules.
Technology and Digital

Commission President von der Leyen framed technological and digital leadership as central to Europe’s strategic autonomy, underlying the current investments in AI gigafactories. Ms. von der Leyen announced a multi-billion-euro “Scale-Up Europe Fund” to close late-stage financing gaps and keep high-growth start-ups in Europe rather than pushing them to seek capital in the United States. Alongside a “European AI & Tech Declaration” to align industry commitments with public policy, she pledged to deepen Europe’s technological sovereignty in cloud, AI and quantum.

Climate and Energy

On climate and energy, President von der Leyen affirmed that the EU is on course to reach its climate and environmental goals. To accelerate the EU’s green industrial base, she proposed an “Industrial Accelerator Act” to fast-track clean tech in strategic sectors and technologies. Ms. von der Leyen also pledged to strengthen the circular economy through a new “Circular Economy Act” and introduced a “Battery Booster Package” designed to expand the EU’s capacity for advanced battery manufacturing.

Health

Ms. von der Leyen announced that the EU will lead a “Global Health Resilience Initiative” to prepare for future global health threats, while pledging a €500 million “Choose Europe” initiative aimed at attracting and retaining top scientific and research talent.

Democracy and Rule of Law

The speech sounded an alarm about disinformation and the fragility of independent media. To counter these threats that undermine democracy in the EU, the Commission will develop a “European Democracy Shield,” establish a “European Centre for Democratic Resilience,” and launch a “Media Resilience Programme” to support independent local journalism and media literacy in the EU.

In addition, she also reinforced the principle that respecting the rule of law is a mandatory condition for accessing EU funds. She highlighted that this link had already been strengthened and declared an intention to further solidify it in the EU’s next long-term budget as a must for EU funds.

President Trump’s new tariff threats escalate EU-US trade tensions

On Friday (5 September), US President Donald Trump threatened to impose more tariffs against the EU following the EU’s €2.95 billion fine against Google for violating anti-monopoly laws. The European Commission has claimed that Google has abused its dominant position in the advertising technology market.

The company will now have 60 days to propose a remedy to the EU. Trump has indicated he might order an investigation under Section 301 of the Trade Act of 1974 – a provision which allows the President to impose trade restrictions if an investigation finds that a country is engaged in a practice that is unjustifiable and burdens or restricts US commerce.

Meanwhile, the US Supreme Court has agreed to fast-track the case challenging Trump’s tariffs. The High Court has set oral arguments for the first week of November – laying out an expedited schedule for both sides to file briefs ahead of that date.

At the same time, on Wednesday, 10 September, a debate was held in Strasbourg on the EU-US trade deal, under the title of ‘Implementation of EU-US trade deal and the prospect of wider EU trade agreements.’

EU Trade Commissioner Maroš Sefčovič began the debate with a short speech, sharing that the EU acted decisively to protect its economy, choosing stability and predictability over escalation and a damaging trade war with the US. He emphasised that the agreement avoided tariffs of 30-50% that would have seriously strained transatlantic relations, while providing much-needed certainty for industries facing volatility. Additionally, he shared that negotiations are continuing to expand the tariff-free trade list – with key sectors such as medical devices under discussion.

US President Trump’s threat to impose new tariffs and willingness to retaliate through Section 301 measures could further escalate current trade tensions. Meanwhile, the US Supreme Court’s decision to fast-track Trump’s hearing creates even more uncertainty in the trade landscape, with potential rulings shaping the scope of future executive trade actions.

The Strasbourg debate on EU-US trade has highlighted divisions between the political groups. While the Commission and centre-right groups framed the deal as pragmatic and needed to ensure stability, other groups questioned its legitimacy and long-term stability. Many MEPs are demanding stronger safeguards.

Compliments of Vulcan Consulting – a member of the EACCNY