In the desolate Arctic desert of Kangerlussuaq, Greenland, Europeans are building defenses against a new, up-and-coming security threat: space hacks. A Lithuanian company called Astrolight is constructing a ground station, with support from the European Space Agency, that will use laser beams to download voluminous data from satellites in a fast and secure manner, it announced last month.  It’s just one example of how Europe is moving to harden the security of its satellites, as rising geopolitical tensions and an expanding spectrum of hybrid threats are pushing space communications to the heart of the bloc’s security plans. For years, satellite infrastructure was treated by policymakers as a technical utility rather than a strategic asset. That changed in 2022, when a cyberattack on the Viasat satellite network coincided with Russia’s invasion of Ukraine.   Satellites have since become popular targets for interference, espionage and disruption. The European Commission in June warned that space was becoming “more contested,” flagging increasing cyberattacks and attempts at electronic interference targeting satellites and ground stations. Germany and the United Kingdom warned earlier this year of the growing threat posed by Russian and Chinese space satellites, which are regularly spotted spying on their satellites.  EU governments are now racing to boost their resilience and reduce reliance on foreign technology, both through regulations like the new Space Act and investments in critical infrastructure. The threat is crystal clear in Greenland, Laurynas Mačiulis, the chief executive officer of Astrolight, said. “The problem today is that around 80 percent of all the [space data] traffic is downlinked to a single location in Svalbard, which is an island shared between different countries, including Russia,” he said in an interview. Europe’s main Arctic ground station sits in Svalbard and supports both the navigation systems of Galileo and Copernicus. While the location is strategic, it is also extremely sensitive due to nearby Russian and Chinese activities. Crucially, the station relies on a single undersea cable to connect to the internet, which has been damaged several times. “In case of intentional or unintentional damage of this cable, you lose access to most of the geo-intelligence satellites, which is, of course, very critical. So our aim is to deploy a complementary satellite ground station up in Greenland,” Mačiulis said. THE MUSK OF IT ALL A centerpiece of Europe’s ambitions to have secure, European satellite communication is IRIS², a multibillion-euro secure connectivity constellation pitched in 2022 and designed to rival Elon Musk’s Starlink system. “Today, communications — for instance in Ukraine — are far too dependent on Starlink,” said Anders Fogh Rasmussen, the founding chairman of political consultancy Rasmussen Global, speaking at an event in Brussels in November. “That dependence rests on the shifting ideas of an American billionaire. That’s too risky. We have to build a secure communications system that is independent of the United States.” The European system, which will consist of 18 satellites operating in low and medium Earth orbit, aims to provide Europe with fast and encrypted communication. “Even if someone intercepts the signal [of IRIS² ], they will not be able to decrypt it,” Piero Angeletti, head of the Secure Connectivity Space Segment Office at the European Space Agency, told POLITICO. “This will allow us to have a secure system that is also certified and accredited by the national security entities.” The challenge is that IRIS² is still at least four years away from becoming operational. WHO’S IN CHARGE? While Europe beefs up its secure satellite systems, governments are still streamlining how they can coordinate cyber defenses and space security. In many cases, that falls to both space or cyber commands, which, unlike traditional military units, are relatively new and often still being built out. Clémence Poirier, a cyberdefense researcher at the Center for Security Studies at ETH Zurich, said that EU countries must now focus on maturing them. “European states need to keep developing those commands,” she told POLITICO. “Making sure that they coordinate their action, that there are clear mandates and responsibilities when it comes to cyber security, cyber defensive operations, cyber offensive operations, and also when it comes to monitoring the threat.” Industry, too, is struggling to fill the gaps. Most cybersecurity firms do not treat space as a sector in its own right, leaving satellite operators in a blind spot. Instead, space systems are folded into other categories: Earth-observation satellites often fall under environmental services, satellite TV under media, and broadband constellations like Starlink under internet services. That fragmentation makes it harder for space companies to assess risk, update threat models or understand who they need to defend against. It also complicates incident response: while advanced tools exist for defending against cyberattacks on terrestrial networks, those tools often do not translate well to space systems. “Cybersecurity in space is a bit different,” Poirier added. “You cannot just implement whatever solution you have for your computers on Earth and just deploy that to your satellite.”

Alleged cigarette smugglers — not hybrid threat agents — were behind the mysterious Belarusian weather balloons that recently spooked Lithuania into shutting its border and declaring a national emergency. Lithuanian authorities said Tuesday they had detained 21 people, allegedly members of a criminal group, on suspicion of smuggling cigarettes from Belarus with the use of GPS-equipped balloons. The general prosecutor’s office said in a statement that the alleged network was “characterized by a very strict conspiracy and distribution of roles,” and that “the organizers may have had direct contacts with accomplices operating in the Republic of Belarus, from where, under favorable weather conditions, balloons with smuggled cigarettes were launched.” Lithuanian authorities said GPS tracking had allowed the balloons to be monitored “and the exact coordinates of their landing in Lithuania were transmitted to the executors.” The country declared a nationwide state of emergency last week over the balloons after closing its border with Belarus in October. Lithuanian Foreign Minister Kęstutis Budrys told POLITICO at the time that the car-sized balloons carrying smuggled cigarettes into the country’s airspace constituted “hybrid activities,” even if they were not direct security threats. European Commission President Ursula von der Leyen also condemned the balloon incursions from Belarus, saying on Dec. 1 that “Such hybrid attack by the Lukashenko regime is completely unacceptable.” According to Lithuanian Interior Ministry data, at least 600 balloons and 200 drones have entered Lithuania’s airspace so far in 2025, disrupting more than 300 flights, affecting 47,000 passengers and leading to around 60 hours of airport closures. The arrests of the alleged cigarette smugglers come as frontline countries on the EU’s eastern flank with Russia plead with Brussels to accelerate its upcoming border defense initiatives in the face of opposition from some European capitals.

Denmark’s military intelligence service has for the first time classified the U.S. as a security risk, a striking shift in how one of Washington’s closest European allies assesses the transatlantic relationship. In its 2025 intelligence outlook published Wednesday, the Danish Defense Intelligence Service warned that the U.S. is increasingly prioritizing its own interests and “using its economic and technological strength as a tool of power,” including toward allies and partners. “The United States uses economic power, including in the form of threats of high tariffs, to enforce its will and no longer excludes the use of military force, even against allies,” it said, in a pointed reference to Washington trying to wrest control of Greenland from Denmark. The assessment is one of the strongest warnings about the U.S. to come from a European intelligence service. In October, the Dutch spies said they had stopped sharing some intelligence with their U.S. counterparts, citing political interference and human rights concerns. The Danish warning underscores European unease as Washington leverages industrial policy more aggressively on the global stage, and highlights the widening divide between the allies, with the U.S. National Security Strategy stating that Europe will face the “prospect of civilizational erasure” within the next 20 years. The Danish report also said that “there is uncertainty about how China-U.S. relations will develop in the coming years” as Beijing’s rapid rise has eroded the U.S.’s long-held position as the undisputed global power. Washington and Beijing are now locked in a contest for influence, alliances and critical resources, which has meant the U.S. has “significantly prioritized” the geographical area around it — including the Arctic — to reduce China’s influence. “The USA’s increasingly strong focus on the Pacific Ocean is also creating uncertainty about the country’s role as the primary guarantor of security in Europe,” the report said. “The USA’s changed policy places great demands on armaments and cooperation between European countries to strengthen deterrence against Russia.” In the worst-case scenario, the Danish intelligence services predict that Western countries could find themselves in a situation in a few years where both Russia and China are ready to fight their own regional wars in the Baltic Sea region and the Taiwan Strait, respectively.

Lithuania on Tuesday declared a nationwide state of emergency over a surge in contraband-carrying balloons flying over the border from Belarus. “It’s clear that this emergency is being declared not only because of disruptions to civil aviation, but also due to national security concerns and the need for closer coordination among institutions,” Lithuanian Interior Minister Vladislav Kondratovič said during a government meeting Tuesday. Kondratovič added that the government had asked the parliament to grant the military additional powers to work with the law enforcement authorities during the state of the emergency. “By introducing a state of emergency today, we are legitimizing the participation of the military … and indeed, every evening, a number of crews go out together with the police, conduct patrols, monitor the territory, and detect cargo,” he said. Lithuania has accused its neighbor Belarus of repeatedly smuggling contraband cigarettes into the country using balloons, prompting air traffic disruptions and a border closure with Belarus. Belarusian dictator Alexander Lukashenko has called Vilnius’ response “petty.” According to Lithuanian Interior Ministry data, at least 600 balloons and 200 drones entered Lithuania’s airspace this year, disrupting more than 300 flights, affecting 47,000 passengers and leading to around 60 hours of airport closures. Lithuanian Prime Minister Inga Ruginienė said the state emergency will help coordination between joint response teams to better intercept the balloons, which both Lithuania and the EU consider to be hybrid attacks. Lithuanian Foreign Minister Kęstutis Budrys told POLITICO in an interview in October that the EU must prepare new sanctions against Belarus to deprive it of the ability to wage hybrid war.

BERLIN — Germany will launch a new federal counter-drone unit as concerns mount over a surge of suspicious drones overflying military sites and critical infrastructure, Interior Minister Alexander Dobrindt said Tuesday. The formation will be part of the federal police’s national special operations arm, and will be trained and certified specifically for drone detection and neutralization, Dobrindt said at an event outside Berlin. The unit will eventually grow to 130 officers, deployed across Germany and moved quickly to hot spots when needed. Germany has over €100 million budgeted this year and next for counter-drone technology, the minister said. The systems include sensors and jammers designed to disrupt hostile drone signals, with the capability to intercept or shoot them down if necessary. “It is an important signal that we are confronting hybrid threats,” Dobrindt said. “We are creating a clear mission to detect, intercept and, yes, also shoot down drones when necessary. We cannot accept that hybrid threats, including drones, become a danger to our security.” Dobrindt said Germany will procure systems from both German and Israeli manufacturers, with further purchases expected in the coming months. This week, Germany’s state interior ministers are also due to decide whether to establish a joint federal-state counter-drone center, bringing together federal and state police forces and the military to coordinate detection and response. Berlin’s new unit marks its most significant move so far toward a standing national counter-drone capability. German security agencies have tracked hundreds of suspicious drone flyovers this year, including near barracks, naval facilities and critical infrastructure. Officials warn that small, commercially available drones are increasingly deployed in Europe for espionage, probing defenses and hybrid operations. Some European governments have pointed the finger of blame at Russia, but so far proof is lacking. Airports across Europe have also been forced to close thanks to overflying drones. Last month, the U.K., France and Germany sent staff and equipment to help Belgium counter drone incursions around sensitive facilities. Many countries are trying to figure out how to deal with the drones in a safe and legal way, as shooting them down could endanger people on the ground.

Europe’s security does not depend solely on our physical borders and their defense. It rests on something far less visible, and far more sensitive: the digital networks that keep our societies, economies and democracies functioning every second of the day. > Without resilient networks, the daily workings of Europe would grind to a > halt, and so too would any attempt to build meaningful defense readiness. A recent study by Copenhagen Economics confirms that telecom operators have become the first line of defense in Europe’s security architecture. Their networks power essential services ranging from emergency communications and cross-border healthcare to energy systems, financial markets, transport and, increasingly, Europe’s defense capabilities. Without resilient networks, the daily workings of Europe would grind to a halt, and so too would any attempt to build meaningful defense readiness. This reality forces us to confront an uncomfortable truth: Europe cannot build credible defense capabilities on top of an economically strained, structurally fragmented telecom sector. Yet this is precisely the risk today. A threat landscape outpacing Europe’s defenses The challenges facing Europe are evolving faster than our political and regulatory systems can respond. In 2023 alone, ENISA recorded 188 major incidents, causing 1.7 billion lost user-hours, the equivalent of taking entire cities offline. While operators have strengthened their systems and outage times fell by more than half in 2024 compared with the previous year, despite a growing number of incidents, the direction of travel remains clear: cyberattacks are more sophisticated, supply chains more vulnerable and climate-related physical disruptions more frequent. Hybrid threats increasingly target civilian digital infrastructure as a way to weaken states. Telecom networks, once considered as technical utilities, have become a strategic asset essential to Europe’s stability. > Europe cannot deploy cross-border defense capabilities without resilient, > pan-European digital infrastructure. Nor can it guarantee NATO > interoperability with 27 national markets, divergent rules and dozens of > sub-scale operators unable to invest at continental scale. Our allies recognize this. NATO recently encouraged members to spend up to 1.5 percent of their GDP on protecting critical infrastructure. Secretary General Mark Rutte also urged investment in cyber defense, AI, and cloud technologies, highlighting the military benefits of cloud scalability and edge computing – all of which rely on high-quality, resilient networks. This is a clear political signal that telecom security is not merely an operational matter but a geopolitical priority. The link between telecoms and defense is deeper than many realize. As also explained in the recent Arel report, Much More than a Network, modern defense capabilities rely largely on civilian telecom networks. Strong fiber backbones, advanced 5G and future 6G systems, resilient cloud and edge computing, satellite connectivity, and data centers form the nervous system of military logistics, intelligence and surveillance. Europe cannot deploy cross-border defense capabilities without resilient, pan-European digital infrastructure. Nor can it guarantee NATO interoperability with 27 national markets, divergent rules and dozens of sub-scale operators unable to invest at continental scale. Fragmentation has become one of Europe’s greatest strategic vulnerabilities. The reform Europe needs: An investment boost for digital networks At the same time, Europe expects networks to become more resilient, more redundant, less dependent on foreign technology and more capable of supporting defense-grade applications. Security and resilience are not side tasks for telecom operators, they are baked into everything they do. From procurement and infrastructure design to daily operations, operators treat these efforts as core principles shaping how networks are built, run and protected. Therefore, as the Copenhagen Economics study shows, the level of protection Europe now requires will demand substantial additional capital. > It is unrealistic to expect world-class, defense-ready infrastructure to > emerge from a model that has become structurally unsustainable. This is the right ambition, but the economic model underpinning the sector does not match these expectations. Due to fragmentation and over-regulation, Europe’s telecom market invests less per capita than global peers, generates roughly half the return on capital of operators in the United States and faces rising costs linked to expanding security obligations. It is unrealistic to expect world-class, defense-ready infrastructure to emerge from a model that has become structurally unsustainable. A shift in policy priorities is therefore essential. Europe must place investment in security and resilience at the center of its political agenda. Policy must allow this reality to be reflected in merger assessments, reduce overlapping security rules and provide public support where the public interest exceeds commercial considerations. This is not state aid; it is strategic social responsibility. Completing the single market for telecommunications is central to this agenda. A fragmented market cannot produce the secure, interoperable, large-scale solutions required for modern defense. The Digital Networks Act must simplify and harmonize rules across the EU, supported by a streamlined governance that distinguishes between domestic matters and cross-border strategic issues. Spectrum policy must also move beyond national silos, allowing Europe to avoid conflicts with NATO over key bands and enabling coherent next-generation deployments. Telecom policy nowadays is also defense policy. When we measure investment gaps in digital network deployment, we still tend to measure simple access to 5G and fiber. However, we should start considering that — if security, resilience and defense-readiness are to be taken into account — the investment gap is much higher that the €200 billion already estimated by the European Commission. Europe’s strategic choice The momentum for stronger European defense is real — but momentum fades if it is not seized. If Europe fails to modernize and secure its telecom infrastructure now, it risks entering the next decade with a weakened industrial base, chronic underinvestment, dependence on non-EU technologies and networks unable to support advanced defense applications. In that scenario, Europe’s democratic resilience would erode in parallel with its economic competitiveness, leaving the continent more exposed to geopolitical pressure and technological dependency. > If Europe fails to modernize and secure its telecom infrastructure now, it > risks entering the next decade with a weakened industrial base, chronic > underinvestment, dependence on non-EU technologies and networks unable to > support advanced defense applications. Europe still has time to change course and put telecoms at the center of its agenda — not as a technical afterthought, but as a core pillar of its defense strategy. The time for incremental steps has passed. Europe must choose to build the network foundations of its security now or accept that its strategic ambitions will remain permanently out of reach. -------------------------------------------------------------------------------- Disclaimer POLITICAL ADVERTISEMENT * The sponsor is Connect Europe AISBL * The ultimate controlling entity is Connect Europe AISBL * The political advertisement is linked to advocacy on EU digital, telecom and industrial policy, including initiatives such as the Digital Networks Act, Digital Omnibus, and connectivity, cybersecurity, and defence frameworks aimed at strengthening Europe’s digital competitiveness. More information here.

Lithuanian authorities temporarily closed the airspace over Vilnius on Thursday evening after balloons were detected flying toward the airport near the capital. The airspace was shut for roughly two and a half hours from 8:10 p.m. to 10:43 p.m. local time, Vilnius airport announced in a social media post.  According to regional media, it marked the sixth time this month that air traffic has had to be halted in the country. At least two flights headed to Vilnius were forced to return to their departure airports on Thursday evening. Belarus has repeatedly launched such balloons, ostensibly to smuggle cigarettes across its border with Lithuania. The stunts have drawn international outrage and caused Lithuania to close its border with its unruly eastern neighbor for a month until Nov. 30. Both European Commission President Ursula von der Leyen and European Council President António Costa condemned Belarus’ actions on Monday night, calling them a “hybrid threat.”  Lithuanian Prime Minister Inga Ruginienė said Oct. 27 that her country intends to permanently close its border with Belarus and shoot down any balloons entering Lithuanian airspace. Belarusian leader Alexander Lukashenko subsequently called Lithuania’s decision to close the border “absurd” and “a crazy gamble.”

BRUSSELS — The European Union should stay the course to create a joint intelligence agency by building trust among national spy services, a senior adviser to the bloc on its security and crisis response plans has warned. “If we can build enough trust, we can also build the agency,” former Finnish President Sauli Niinistö told POLITICO in an interview. European Commission President Ursula von der Leyen tapped Niinistö last year to draft a report on how the EU could strengthen its civilian and defense preparedness in an increasingly unpredictable world — similar to the advisory reports penned by former Italian premiers Mario Draghi on Europe’s competitiveness problem and Enrico Letta on the future of the EU’s single market. Niinistö’s report, published one year ago this Thursday, recommended creating a “fully fledged intelligence cooperation service” at the EU level to bridge gaps between national agencies and improve early warning capabilities. Europe is seeking to bolster its joint intelligence capabilities as it faces a crisis in relations with the United States and a growing threat from Russia. In the past year, many national capitals have embedded intelligence officials in their Brussels representation offices and the European Union’s in-house intelligence unit has started briefing top-level officials. But security services have deep, decades-old trust issues. New revelations that Hungarian intelligence officials disguised as diplomats tried to infiltrate the EU institutions show how governments within the EU still keep close watch over each other. “The idea of a European intelligence agency, it is more for the future and we have to develop toward that,” Niinistö acknowledged. Since publishing his report, the European Commission came out with the Preparedness Union Strategy in May to better anticipate, prevent, and respond to hybrid threats including cyberattacks, sabotage, disinformation campaigns and the impact of climate change. It also announced the ReArm Europe plan, a €800 billion initiative to boost European defense spending and military readiness. COMING TO GRIPS WITH WAR The 77-year-old statesman said Europeans should get used to the idea of war in order to allow governments to scale up their defenses. “My ideal situation is that people in Europe — all over Europe — understand that security is the foundation of everything,” Niinistö said, adding he “would like to see a change of mindset.” For Niinistö, the challenge is not only political but psychological. Democracies, he noted, move at the pace of public opinion — and without broad recognition of the need for stronger defenses, governments will struggle to act decisively. “To a certain extent, I think it’s developing positively — that people, even in countries not located on the frontline with Russia, start to understand why it is important,” he said. Niinistö stepped down as president in 2024. | Ina Fassbender/AFP via Getty Images Niinistö stepped down as president in 2024. He steered Finland through its NATO accession, which was completed in April 2023. The former president pointed to shifting global dynamics. He cited the recent Shanghai Cooperation Organisation summit in Tianjin as evidence that China is seeking to project political as well as military power on the world stage, as it pushed for a“fairer multipolar world” and tighter security cooperation with members. “That was a clear message,” he said. The former Finnish leader warned that Europe can no longer afford to rely indefinitely on the United States for its protection. Washington, he noted, is increasingly preoccupied with other regions, which would leave Europe more exposed in the years ahead. “Europe needs to be able to take care of itself by developing its own capabilities,” Niinistö said. “This is a major question for us Europeans in the future — how much can we take care of ourselves for our security, information, and technology?” “You have to be able to cooperate with your friends,” he added, “but you also have to be able to work alone — in case your friends are more active elsewhere.”

Lithuania intends to permanently close its border with Belarus and shoot down any balloons entering its airspace, Prime Minister Inga Ruginienė said Monday. “We are sending a signal to Belarus that no hybrid attack will be tolerated, and we are taking the strictest measures to stop such attacks,” Ruginienė said at a press conference following a meeting of the National Security Commission. “The armed forces will take all necessary measures, including kinetic measures to shoot down the balloons,” Ruginienė added. The border is currently closed pending a decision that will be made at a government meeting on Wednesday. It will remain open for EU nationals leaving Belarus and for diplomatic movement. Lithuanian authorities shut down airspace over Vilnius four times last week and three times over the weekend due to balloons from Belarus violating the country’s airspace. More than 170 flights were disrupted, affecting more than 30,000 passengers. The National Crisis Management Center reported that radar systems tracking Lithuanian airspace detected 66 objects traveling from Belarus into Lithuania Sunday night, about double the number recorded the previous night. The balloons, used by smugglers to transport contraband cigarettes from Belarus, are suspected to be hybrid operations. As a result, Lithuania is considering harsher penalties for smuggling, including imprisonment. Ruginienė also said Lithuania will push for additional sanctions on Belarus at the EU level and did not rule out invoking NATO’s Article 4, which calls for urgent discussions with allies when a member fears its security is at risk. The article has been invoked only nine times in the alliance’s 76-year history, including twice in the last month alone after Russia violated Estonian and Polish airspace. Lithuania’s ambassador to NATO had said last week that the issue should be treated as an internal problem rather than a matter for the alliance. An adviser to Lithuania’s president had earlier said that shooting down balloons with firearms is “a mission impossible,” as they fly at an altitude of 8 kilometers above the ground and, depending on weather conditions, at a speed of 100 to 200 kilometers per hour. Europe has been grappling with how to protect its airspace after a spate of drone sightings and airport closures in recent months.

The European Commission president’s big set-piece speech of the year is upon us. The State of the Union address is where Ursula von der Leyen sets out her vision for the year ahead, and it promises to be a very challenging 12 months, for her and for Europe. So we tapped into the POLITICO newsroom’s deep knowledge of the political and policy realms and have attempted to preempt her speech by writing our own version. This is what we think she’ll say. Remember, this is not the actual State of the Union but our version of it. As it says on all speeches sent to journalists ahead of time, “please check against delivery.” Madam President, Honorable members, My fellow Europeans, This comes at a pivotal moment for Europe. We live in a world that presents many challenges for our Union; challenges that we as Europeans will have to face together. It is also a time for Europeans to decide which kind of future they wish to embrace; one of unity, one of strength, one of making our continent a better, more secure place; or one of conflict and dissent, in which we let external forces dictate the direction of our lives. There are people out there who want to destroy Europe; who side not with those of us who want a peaceful, prosperous Europe, but with our enemies. I know which path I will choose. And I believe, as I am sure you do too, that the people of Europe will take the right road. That is why, as we reflect on the State of our Union, we must acknowledge the advances we have made but also build the foundations of a more stable Europe, one that is less reliant on others in critical areas. UKRAINE AND DEFENSE Mesdames et Messieurs, les députés, Russia’s brutal war against Ukraine has presented us with challenges not seen since World War Two. As a result, we must take greater responsibility for our own security. That means investing in robust defense, safeguarding our people, and ensuring we have the resources to act when needed.  The EU’s likely message to Ukraine? We are at your side. | Olivier Hoslet/EPA Investing in European defense means investing in peace and long-term stability for current and future generations. It also means boosting technological innovation, supporting European competitiveness, promoting regional development, and powering economic growth.   Our ReArm Europe plan gives member states greater flexibility to spend more on defense while ensuring that the European defense industry can produce at speed and volume. It will also allow the rapid deployment of troops and assets across the EU. Red tape needs to be slashed to reach these aims. In a first step to simplify regulations, the Commission has already proposed a Defence Readiness Omnibus that will help untangle investment rules. However, simply spending more is not enough. Member states need to spend better, work together, and prioritize European companies. The EU will support this by helping coordinate investments and making sure that defense equipment is ‘Made in Europe’.  Yet the challenges caused by Russia are great and varied, including the threats caused by hybrid warfare attacking European infrastructure, and the increasing spread of disinformation online. We already have plans for an early-warning system and rapid response teams to help hospitals fight off cyberattacks. We can only overcome these problems by working together and, rest assured, Europe will also maintain diplomatic and, in particular, economic pressure on Russia. This week we will publish the 19th package of sanctions, as we tighten the net on those who do business with Russia. Working with our partners in the U.S., we are continuing to limit Russia’s potential and showing Vladimir Putin that we are serious about bringing an end to this war. Because a predator such as Putin can only be kept in check through strong deterrence. Our boost to defense is not just for our own security but for that of our allies and neighbors, and those who share our European values and wish to join the bloc. That is why our message to Ukraine is clear: Your future is in the European Union and we have been, and will continue to be, at your side every step of the way. REVIVING THE EUROPEAN ECONOMY Meine Damen und Herren Abgeordnete, As we look to advance our goals to boost European competitiveness, we have strong foundations such as our potential to unleash vast resources and latent technological and industrial power. I asked Mario Draghi to deliver a report on how to revive the European economy. One year ago, he delivered that report and we have been delivering on his recommendations. The year since the publication of Mario Draghi’s report has been all about cutting red tape and … boosting European competitiveness. | Olivier Hoslet/EPA As part of the Commission’s plans for the next multiannual financial framework — an ambitious and dynamic budget that will help us meet the challenges of the future — we created a €409 billion cash pot to fund Europe’s industrial revival, allowing European firms to rapidly scale up and cut red tape when accessing EU funds. And after a very clear signal from the European business sector that there is too much complexity in EU regulation, we launched the Omnibus Package to simplify legislation for sustainable finance, due diligence and taxonomy rules, and save companies €37 billion a year by 2029.   Mr. Draghi also recommended a single market for investment in the EU, and we have pushed forward plans for a Savings and Investments Union that would integrate supervision of capital markets and break down national barriers for the likes of stock exchanges and clearinghouses. The other major challenge we face is trade. The Commission has taken steps to deepen partnerships with trusted allies, partners and friends, which is an essential step in today’s uncertain geopolitical climate. We have in recent weeks secured trade deals with the United States as well as with Mexico and the Mercosur bloc of Latin American countries. I urge everyone in this House who believes in making our Union stronger to support these trade deals as they, and others, will help businesses across the continent, opening up our markets and diversifying our exports. The Mercosur deal alone opens up a market of over 280 million people for European exports, while the U.S. trade deal saves trade flows, saves jobs in Europe and opens up a new chapter in EU-U.S. relations. MIGRATION Señoras y señores diputados, Europe remains a place of safe refuge for those fleeing conflict and climate change. But I am of the firm belief that migration needs to be managed. That is why, after the launch of the Migration and Asylum Pact, we created a plan to streamline deportations, toughen penalties for rejected migrants who do not leave the bloc, and create hubs in countries outside the EU to house people awaiting deportation. Migration is often exploited by populists for political gain. But we want to create a system that supports those with a genuine asylum claim while making clear the rules on forced returns, and incentivizing voluntary returns. We also want to continue attracting talent from across the globe in areas where Europe is a world leader, such as in the life sciences and biotech spheres. Migration is a key issue for European citizens, but there are others. The latest Eurobarometer survey shows that the No. 1 issue Europeans want the EU institutions to resolve is the cost of living crisis. Across the continent, families are struggling to pay for homes, and this Commission is determined to do everything in its power to ease the pressure they are facing.  Migration is a key issue for European citizens. | Gene Medi/NurPhoto via Getty Images Early next year, we will present Europe’s first-ever European Affordable Housing Plan, which will aim to accelerate the construction of new homes, the renovation of existing buildings, and ensure no one sleeps on the streets by 2030. To do so, we will move to put in new measures to limit speculation, introduce regulations for short-term rentals in stressed housing markets, and cut red tape to boost public and private investments in the construction of new homes. People are also concerned about their energy bills and, here, the Commission is taking action. We must never forget Putin’s deliberate use of gas as a weapon, and that is why the EU will phase out Russian gas by 2027 thanks to the REPowerEU roadmap. As part of our deal with Washington, we will increase our energy imports from the U.S. over the next three years, a plan that is fully compatible with our medium- and long-term policy to diversify our energy sources and part of our commitment to the green agenda that so many in this House, myself included, fully support. That is why we have drawn up the Grids Package, which will come out later this year and aims to turbocharge investment in power networks, which is the key bottleneck in the uptake of more renewables. ARTIFICIAL INTELLIGENCE Signore e signori, deputati, The time is coming when artificial intelligence will match human thinking. That is why this week we published a report looking at the challenges and opportunities of AI. In Europe, we must take a leading role in shaping high-impact technologies. We will make sure there is smart yet strategic regulation while creating the right incentives, including funding and investment, to prevent AI and other technologies from becoming destabilizing forces. But we must not forget our traditional industries. The automotive sector is a critical pillar of the European economy, supporting more than 13 million jobs. The industry is facing increased competition from those who have benefited from unfair subsidies, and we have taken big steps to ensure this critical sector remains competitive and made in Europe. With our Automotive Action Plan, we set a strong course for building European batteries and ensuring our companies are the technological leaders in autonomous driving. At the same time, we have made big strides in maintaining our climate goals while giving our companies the necessary flexibility to stay competitive. THE EU BUDGET Panie i panowie, posłowie, We want a stronger European Union, stronger member states, and stronger regional and city governments, and we will work with local leaders — those closest to Europe’s citizens — to ensure they get the funds they need.  Cohesion Funds have helped build our Union with bridges and railways, public sports halls and libraries. Our cohesion policy is a central pillar of the European Union, and we will ensure that it continues to bridge gaps between regions, while also earmarking funds for the cities in which nearly three-quarters of all Europeans live. But we also want to protect and promote one of the most important elements of Europe, its agriculture and farmers. With our budget proposal we are safeguarding direct payments to farmers, boosting the funding available to rural communities, and giving more money to national governments to spend on agriculture. Farmers are essential to Europe, and what matters to Europeans matters to Europe. We need a continent that is united, safe and prosperous. I believe we can rise to the challenge. Long live Europe. Thanks to Victor Jack, Sam Clark, Max Griera, Pieter Haeck, Jordyn Dahl, Aitor Hernández-Morales and Helen Collis.