In her State of the Union speech, EU Commission President von der Leyen emphasized her heart’s project: the green transformation of Europe. It is threatened by critics from her party, China and a weak economy. It fails to allay concerns about loss of wealth.
Ursula von der Leyen still left it open whether she would run for the office of EU Commission President again. Nevertheless, in her State of the Union speech in the European Parliament, she made it clear which project she would stick to if she ran again and won: the green transformation of Europe. But the agenda was and is not a sure-fire success, von der Leyen also knows that.
Von der Leyen had already initiated the Green Deal since she took office in 2019. It is intended to ensure that the EU no longer emits any net greenhouse gases by 2050. To achieve this goal, the EU institutions are working on a variety of laws to stimulate the circular economy, preserve biodiversity and produce food more sustainably.
Right at the beginning of her speech, the Commission President paints a picture of the trip to the ballot box at the European elections next year. She speculates what thoughts first-time voters might have in the voting booth. She leaves no doubt that she wants to convince the young generation of her “green, digital and geopolitical Europe”. But it is also clear to her that some members of the EU Parliament have doubts, she says.
Involve Von der Leyen Industry more
The mood in the European Union is currently comparable to that in Germany. In addition to concerns about rising energy prices, high inflation is also fueling fears of loss of prosperity and competitive disadvantages. It was only on Monday that the Commission had to significantly downgrade its economic outlook for the eurozone. This year it only expects gross domestic product (GDP) to increase by 0.8 percent in the 20 euro countries. That is 0.3 percentage points less than predicted in the spring. The prospects are particularly not rosy for Germany, which Brussels sees as being in recession at minus 0.4 percent.
For von der Leyen, however, the gloomy forecast is no reason to give up on the transition to a climate-neutral economy, which will cost money and time. She regularly receives criticism for this and also antagonizes parts of her party. Some members of the Union see them more with the Greens than with the CDU due to their ecological ambitions. In her speech, she cannot completely dispel concerns about the costs that von der Leyen’s plans will cause.
At least she wants to involve the industry more closely in decisions and has announced energy transition dialogues with business representatives. She would also like to help small and medium-sized enterprises (SMEs) that have too little capacity to process EU applications or that are slowed down by procedures. “For this reason, we will appoint – before the end of the year – an EU SME representative who will report directly to me,” said von der Leyen.
Punitive tariffs could lead to a trade war with China
The plans also include presenting a package for wind power in Europe. “The future of our clean tech industry must lie in Europe,” emphasizes the Commission President. In the next breath she makes it clear which country could endanger this future: China. She sharply criticizes Beijing for providing subsidies to Chinese companies to create a competitive advantage. The EU has not forgotten “how China’s unfair trade practices have affected our solar industry.” Young European companies were thus pushed out of the market. This should not be repeated with electromobility.
In response, the EU is now launching an investigation into government support for electric cars from China. According to this so-called anti-subsidy investigation, China is threatened with punitive tariffs in the worst case scenario, which could even lead to a trade war with China. Despite this warning to Beijing, von der Leyen emphasizes that she is still interested in reducing dependencies in dealing with China without completely decoupling economically. Critics of this “de-risking” strategy ask themselves whether a gradual disconnection from China will unnecessarily further weaken the already ailing European economy.
Von der Leyen also emphasizes the EU’s goal of preserving biodiversity on the continent. But the agricultural sector should not suffer from this. “I am and remain convinced that agriculture and nature conservation go together,” she says. “More dialogue and less polarization” is needed in the debate. This warning is a message to the CSU politician Manfred Weber, chairman of the European People’s Party (EPP), of which von der Leyen is also a member.
“Need vision for successful expansion”
Weber tried to prevent the Commission’s EU law to restore nature in the summer because, in his view, it would unilaterally burden farmers with the costs of climate protection. However, the European Parliament voted in favor by a narrow majority. A defeat for Weber, as even members of his parliamentary group resisted his call to vote against the amendment. Von der Leyen traditionally delivers her speech in German, English and French. Perhaps it is no coincidence that she chooses German for her remarks on agriculture to address farmers in this country.
From migration to artificial intelligence to partnerships with countries in Africa and South America – the range of European topics is reflected in von der Leyen’s speech, which lasts more than an hour. The Commission President devotes a relatively large amount of time to the Russian war of aggression in Ukraine. She explains the conditions that must be created to enable Ukraine to join the EU. “We need a vision for successful expansion,” said von der Leyen. She sees Ukraine, as well as the other accession candidates, as having an obligation to demonstrate progress in reforms to the rule of law.
If necessary, a change to the treaties would also be necessary to include countries. However, she “doesn’t want to wait” for that, says von der Leyen, knowing full well that it’s not just the Commission and Parliament that have to agree to treaty changes. The member states also have to follow suit, which seems almost impossible given the blockade stance of some countries such as Hungary. Hungary is in many ways a problem case in the EU because corruption is rampant there. The commission has therefore already frozen funding. However, Von der Leyen does not explain what she wants to do next against Budapest, to which some MPs react with irritation.