Listen on * Spotify * Apple Music * Amazon Music “Europe is in a fight.” With those words, Ursula von der Leyen set the tone for her State of the European Union speech — framing this as Europe’s “Independence Moment.” She proposed sanctions on extremist Israeli ministers over Gaza; floated using frozen Russian assets for Ukraine; and backed calls for a drone wall to protect the bloc’s eastern flank against Russia. She also pledged action on jobs, poverty and housing. But were those fighting words enough to bridge the gap between promises and reality — or did they simply paper over a fraying coalition? Host Sarah Wheaton is joined by Rym Momtaz, editor-in-chief of Carnegie Europe’s Strategic Europe blog; Carsten Brzeski, ING’s global head of macro research; and Sorcha Edwards, secretary general of Housing Europe, to unpack the geopolitics, economics and social policy in the speech. We’ll also hear from POLITICO’s Max Griera in Strasbourg, with on-the-ground reactions from MEPs — and look across the border to France, where President Emmanuel Macron faces fresh political turmoil after the government of Prime Minister François Bayrou collapsed.

STRASBOURG — The European Parliament on Thursday said the EU should sanction members of the Israeli government and pause payments to the country. The Parliament’s first common resolution on the situation in Gaza since the attacks by Hamas on Israel on Oct. 7 2023 came a day after Ursula von der Leyen said the European Commission would sanction “extremist ministers” and violent settlers, and pause bilateral payments to Israel. The text — which was adopted with 305 votes in favor, 151 against, and 122 abstentions — also supports von der Leyen’s proposal to partially suspend trade aspects of the EU-Israel Association Agreement. The Parliament called for EU governments to recognize the state of Palestine in view of achieving a two-state solution, and stated it “strongly condemns the obstruction of humanitarian aid to Gaza by the Israeli Government, which has caused a famine in northern Gaza.” The resolution also includes a demand to carry out an investigation into war crimes and human rights violations, “and for all those responsible to be held to account.” The Socialists, liberals and Greens agreed on the text on Tuesday, but the center-right European People’s Party — whose votes were essential to reach a majority — had refused to sign off on the wording. On Thursday morning, just ahead of the vote, the EPP backed the text after scoring concessions from the other groups. They managed to avoid the Parliament declaring the situation in Gaza as a “genocide” and cut any mentions to the situation in Gaza being a “man-made famine.” The EPP also managed to delete sections of the text that condemned the Commission and EU governments for lack of action. As the EU’s top diplomat, Kaja Kallas, said on Tuesday, EU governments haven’t been able to come up with a joint strategy on how to put pressure on Israel. 

Nearly a decade after EU leaders declared all Europeans have the right to decent housing, European Commission President Ursula von der Leyen said on Wednesday that it’s time for the bloc to deliver. “A home is not just four walls and a roof: it is safety, warmth, a place for family and friends,” von der Leyen told European Parliament lawmakers during her annual State of the European Union address in Strasbourg. “But for too many Europeans today, home has become a source of anxiety.” Citing data that shows housing prices across the bloc have increased by more than 20 percent since 2015, the Commission president vowed to do more to tackle an issue that has generated mass protests in many of Europe’s cities and become a major factor in national elections. “This is more than a housing crisis,” she said. “It is a social crisis.” Von der Leyen has made the housing affordability crisis a key priority of her second administration, tapping Denmark’s Dan Jørgensen to be the bloc’s first commissioner for housing. The latest Eurobarometer survey shows Europeans want the EU to make solving the cost-of-living crisis a top priority. During her speech, von der Leyen confirmed the Commission will unveil its European Affordable Housing Plan early next year, which will include measures to accelerate the construction of new homes, renovate existing buildings and end homelessness by 2030. Responding to long-standing demands from housing experts and national governments, she said the Commission will revise state aid rules so that EU members can use public cash to build affordable housing. Following up on last year’s EU legislation requiring the registration of all short-term rentals by 2026, she also promised to further rein in the tourist flats that are a major factor in the EU’s housing shortage. EU mayors are calling for measures that would target properties in stressed markets like those found in most of the bloc’s major cities and tourism hot spots. “Nurses, teachers, and firemen cannot afford to live where they serve,” she said. “Students drop out because they cannot pay the rent, and young people delay starting families.” “Housing is about dignity,” von der Leyen added. “It is about fairness. And it is about Europe’s future.”

European lawmakers accused Commission President Ursula von der Leyen of striking a bad, one-sided trade deal with U.S. President Donald Trump after she defended the accord in her annual State of the Union address Wednesday.  “Where was Europe when you signed an unfair deal with Trump?” asked Socialists & Democrats leader Iratxe García Pérez. Responding to von der Leyen’s speech, she called the EU’s decision to accept a 15 percent tariff on most EU exports while scrapping its own tariffs on U.S. industrial goods “unacceptable.”  The EU’s strategic autonomy, said García Pérez, has been buried “under a golf course.”  She was referring to the trade deal that von der Leyen struck with Trump at his Turnberry resort in Scotland in July. Von der Leyen and her aides have defended the deal as the best that could be done in difficult circumstances. Many critics fear, however, that it will condemn the bloc to an era of economic subjugation. Ahead of Wednesday’s speech, the European Socialists had already come out against the deal — and others leaped at the chance to criticize the agreement or voice specific concerns.  Both on the left and radical-right side of the Parliament, the truce with Trump was criticized widely. Martin Schirdewan, the German leader for The Left, said that “fighting overcapacity with more trade is like throwing lighters on the fire of the European economic crisis.” LEFT-RIGHT PILE ON Bas Eickhout of the Greens and Jordan Bardella of the right-wing Patriots for Europe both slammed von der Leyen’s promise that the EU would buy €750 billion in U.S. energy — mostly fossil-based — albeit for very different reasons.  Eickhout argued that, amid climate change, this money should be invested into European renewable energy. Bardella claimed, falsely, that EU countries would be coughing up that amount. In reality, this number is based on projections of investments and market developments, not hard agreements. While less harsh in her assessment, Valérie Hayer, chief of the liberal Renew Europe group, urged von der Leyen to “continue standing firm” on the bloc’s regulatory power and autonomy in trade talks. Trump has repeatedly attacked the EU’s digital rulebook, arguing that it puts U.S. companies at a disadvantage. European People’s Party leader Manfred Weber — von der Leyen’s political ally and fellow German conservative — seemed relatively isolated in his defense of the trade deal, asking: “What is the alternative to Scotland?” In her speech, von der Leyen called on lawmakers to support the agreement. Their votes will be needed to pass legislation to scrap the EU tariffs on U.S. industrial goods, which in turn would unlock a reduction in the levies on European cars being exported to the U.S. “I have heard many things about the deal we agreed on over the summer,” she said in her hour-long address. “I understand the initial reactions … But when you account for the exceptions that we secured and the additional rates which others have on top — we have the best agreement. Without any doubt.” “The deal provides crucial stability in our relations with the U.S. at a time of grave global insecurity,” she told MEPs. “Think of the repercussions of a full-fledged trade war with the U.S.” Trump, however, is ready to demand more and on Tuesday told the EU it should put 100 percent tariffs on both China and India to pressure them into abandoning support for Russian leader Vladimir Putin and his war against Ukraine, the Financial Times and other news outlets reported. Von der Leyen, in her speech, did not respond to the U.S. demands, but did stress the need to keep up the pressure on Russia. “We need more sanctions,” she said, referring to a 19th round of measures that will prioritize phasing out imports of fossil fuels more quickly. This proposal is expected to land this week, with negotiations between EU governments to follow. 

Ursula von der Leyen’s big State of the Union speech on Wednesday covered a lot of ground, from a plan to sanction Israeli ministers and defense of her U.S. trade deal to support for regulations on Big Tech and calls for all Europeans to have access to electric vehicles. In a testy, at times hostile, European Parliament, the Commission president rarely appeared flustered. But what was beneath the rhetoric and the carefully-crafted statements? *** What she said: “Europe is in a fight.” What she meant: We used to stand beside — well, behind — the U.S. when taking on bullies Russia and China. But the U.S. is now one of the bullies, so let’s hit the gym. *** What she said: “Battlelines for a new world order based on power are being drawn right now. So, yes, Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe.” What she meant: The U.S. alternates between being ambivalent and openly hostile to Europe. Sometimes within minutes of each other. I prefer the former. *** What she said: “We are also working to find a way to grant a bonus to those who support Ukraine or buy Ukrainian equipment. This is emergency financial assistance responding to an urgent need. Last week, I saw this for myself when I visited frontline member states. They know best the threat Russia poses.” What she meant: I was on a plane that may or may not have lost access to GPS signals, and if that did happen, it may or may not have been the work of Russia. The plane may or may or may not have been delayed for a significant amount of time, and the pilots may or may not have had to use paper maps to land. So I feel your pain. *** What she said: “There is no doubt: Europe’s eastern flank keeps all of Europe safe. From the Baltic Sea to the Black Sea. This is why we must invest in supporting it through an Eastern Flank Watch.” What she meant: With effectively no military capabilities, we are instead sending some binoculars to Estonia. *** What she said: “There is no time to waste. At the next European Council, we will therefore present a clear roadmap. For getting new common defense projects off the ground. For setting clear goals for 2030. And for creating a European Defense Semester. 2030 is tomorrow.” What she meant: Chances of the European Council agreeing on anything defense-related by 2030 are next to non-existent. *** What she said: “What is happening in Gaza has shaken the conscience of the world. People killed while begging for food. Mothers holding lifeless babies. These images are simply catastrophic. So I want to start with a very clear message: Man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity — this must stop.” What she meant: What is happening in Gaza is truly horrific, but I’m going to wait a while before mentioning Israel. *** What she said: “We will put our bilateral support to Israel on hold.” What she meant: We can’t do anything to stop EU members sending whatever they like to Israel. *** What she said: “We are tackling the key bottlenecks identified by the Draghi report — from energy to capital, investment to simplification.” What she meant: The Draghi report came out a year ago, and we’ve done almost nothing he asked for. But he keeps reminding people, so we can’t just forget it ever happened. *** What she said: “The omnibuses we have put on the table so far will make a real difference. Less paperwork, less overlaps, less complex rules. Our proposals will cut €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.” What she meant: You wait ages for an omnibus and then several turn up at once. *** What she said: “The IMF estimates that the internal barriers within the single market are equivalent to a 45 percent tariff on goods and a 110 percent tariff on services.” What she meant: So my deal with Donald Trump wasn’t that bad, was it. *** What she said: “Energy bills are still a real source of anxiety for millions of Europeans. And costs are still structurally high for industry. We know what drove prices up ― dependency on Russian fossil fuels. So it is time to get rid of dirty Russian fossil fuels.” What she meant: Message to Hungary: stop using Russian gas. Thank goodness I agreed to use massive amounts of American LNG instead. *** What she said: “A home is not just four walls and a roof. It is safety, warmth, a place for family and friends.” What she meant: I live in my office. *** What she said: “I believe Europe should have its own e-car. ‘E’ for environmental — clean, efficient and lightweight. ‘E’ for economical — affordable for people. ‘E’ for European — built here in Europe, with European supply chains.” What she meant: E for extremely scared of the German car lobby. *** What she said: “In Europe, we have access to high-quality food that our outstanding farmers and fishers produce at affordable prices. What she meant: Please don’t keep coming to Brussels and dumping liquid manure everywhere. *** What she said: “We have simplified the CAP [Common Agricultural Policy] — less paperwork and more trust. We have ringfenced income support in the next MFF [Multiannual Financial Framework]. And made sure that funding can be topped up by national and regional envelopes.” What she meant: We have every intention of passing the buck on farmers to the national capitals. *** What she said: “I have heard many things about the deal we agreed on over the summer. I understand the initial reactions. So allow me to be as clear as I can. Our trading relationship with the U.S. is our most important. We export over €500 billion worth of goods to the U.S. every year. Millions of jobs depend on it. As president of the Commission, I will never gamble with people’s jobs or livelihoods. This is why we did a deal to keep market access for our industries.” What she meant: It was a terrible deal, but if you annoy Donald Trump, he says mean things about you on Truth Social. *** What she said: “Think of the repercussions of a full-fledged trade war with the U.S. Picture the chaos.” What she meant: I know it’s already chaos. *** What she said: “We are on the brink – or even at the start — of another global health crisis. As a medical doctor by training, I am appalled by the disinformation that threatens global progress on everything from measles to polio. And this is why today I can announce that the EU will head a new Global Health Resilience Initiative.” What she meant: I’m more than happy to call Pfizer. *** What she said: “When independent media are dismantled or neutralized, 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. So we need to do more to protect our media and independent press.” What she meant: Autocrat’s playbook is bad, but Brussels Playbook is great. *** What she said: “I strongly believe that parents, not algorithms, should be raising our children.” What she meant: And Netflix helps. *** What she said: “Climate change is making each summer hotter, harsher, and more dangerous. This is why we have to radically step up our efforts into climate resilience and adaptation, and nature-based solutions.” What she meant: I purposely waited until near the end of my speech to mention climate, to annoy the Greens. *** What she said: I would like to tell you the story of a group of 20 Greek rangers. They are specialists in taming the fiercest of forest fires … As the flames swept closer to the village of Genestoso, they fought day and night to contain the inferno. And in the end — together — they tamed the fire, and the village was saved. It is such an honor to welcome one of these heroes today.” What she meant: Try booing me when I’ve just introduced a handsome, brave firefighter! *** What she said: “I support the right of initiative of the European Parliament. And I believe that we need to move to a qualified majority in some areas, for example, in foreign policy. It is time to break free from the shackles of unanimity.” What she meant: There are too many far-right people in the Parliament, so we can just ignore them.

European Commission President Ursula von der Leyen wants the EU to help front-line countries monitor and defend their borders against potential Russian aggression — backing a long-standing request from Poland and Baltic nations. “There is no doubt: Europe’s eastern flank keeps all of Europe safe. From the Baltic Sea to the Black Sea. This is why we must invest in supporting it through an Eastern Flank Watch,” she told European lawmakers in her State of the Union address Wednesday morning. “This means giving Europe independent strategic capabilities. We must invest in real-time space surveillance so that no movement of forces goes unseen. We must heed the call of our Baltic friends and build a drone wall,” the German politician added. Von der Leyen’s comments came only a few hours after Poland scrambled fighter jets to shoot down Russian drones that entered its airspace. Back in June, Romania also sent warplanes to monitor Russian drones approaching its border. Wednesday’s incident over Poland has been perceived by Western allies as a way for Russian President Vladimir Putin to test NATO’s defenses. Front-line countries — especially Poland, Estonia and Lithuania — have long called for the EU to contribute financially to the defense of their borders. They argue their efforts will protect the bloc as a whole against any attack from Russia, as military and intelligence top brass have warned in the past that Putin could target Baltic nations or Poland to test NATO’s mettle. They have successfully pushed for money from the EU’s loans-for-weapons SAFE scheme to be easily available for items including drones and anti-drone systems. Warsaw launched a project last year dubbed East Shield that aims to strengthen the Polish border with Russia and Belarus, while Baltic nations are starting to teach children to build and fly drones. Countries such as Lithuania are also behind the idea of a “drone wall,” which they see as a permanent presence of unmanned aerial vehicles on their borders to monitor threats. A few days before giving her State of the Union address, von der Leyen went on a front-line state tour that took her to countries including Finland, Estonia, Lithuania, Latvia and Poland. “Last week, I saw this for myself when I visited front-line member states. They know best the threat Russia poses,” she told European lawmakers on Wednesday. Von der Leyen also announced the EU will enter into a so-called Drone Alliance with Ukraine and front-load €6 billion from the G7-led Extraordinary Revenue Acceleration (ERA). Russia’s war in Ukraine has highlighted the importance of drones in warfare — they can be used for surveillance purposes and as lethal weapons to reach remote or dangerous areas. Ukraine is widely perceived as being innovative with the technology, namely through the use of AI and automation. Von der Leyen gave few details about the defense road map she has to present to EU leaders in October, but did say she wants to launch a so-called European Semester of Defence to monitor capitals’ progress in military buildup.

Listen on * Spotify * Apple Music * Amazon Music Vor ihrer ”State of the Union” in Straßburg steht EU-Kommissionschefin Ursula von der Leyen unter Druck. Nach dem demütigenden Zoll-Deal mit Trump und internem Streit um die Klimapolitik muss sie ihre Punkte machen. Hans von der Burchard analysiert, welche Ankündigungen zu erwarten sind – und ob von der Leyen den Green Deal opfert. Im 200-Sekunden-Interview: Franziska Brantner. Die Grünen-Chefin warnt davor, den Green Deal aufzuweichen und bezeichnet den US-Handelspakt als Ergebnis einer Erpressung. Sie erklärt, was die Bundesregierung jetzt für die deutsche Autoindustrie tun muss. Außerdem: Im Kabinett fällt die Entscheidung zur zweiten Nullrunde in Folge beim Bürgergeld. Rasmus Buchsteiner berichtet über die Hintergründe und welche anderen Vorhaben die Koalition gleichzeitig auf den Weg bringt. Das Berlin Playbook als Podcast gibt es jeden Morgen ab 5 Uhr. Gordon Repinski und das POLITICO-Team liefern Politik zum Hören – kompakt, international, hintergründig. Für alle Hauptstadt-Profis: Der Berlin Playbook-Newsletter bietet jeden Morgen die wichtigsten Themen und Einordnungen. Jetzt kostenlos abonnieren. Mehr von Host und POLITICO Executive Editor Gordon Repinski: Instagram: @gordon.repinski | X: @GordonRepinski.

Ursula von der Leyen’s State of the Union speech is one of the big set-piece events in the EU political calendar — and what better way to mark the occasion than to play a fun game? So switch on EBS, pour yourself a strong coffee (maybe with a shot of rum in it), and enjoy a game of State of the Union bingo. If you get a full line of correct answers, please stand on the roof of your office block/house and shout “bingo!” really loudly.

European Commission President Ursula von der Leyen will deliver her eagerly awaited State of the European Union speech on Wednesday morning. Her address will set out the Commission’s priorities for the weeks and months ahead, as the EU faces up to massive geopolitical and strategic challenges. Follow all the action here, as POLITICO’s expert reporters unpack von der Leyen’s remarks.

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.