Von der Leyen: Europe should act in world with new rules

Europe should adapt to a "world that has lost its certainties", as the previous model based on cheap imported energy, open global trade, access to the Chinese market, and American security guarantees no longer works, Report informs, referencing a speech by European Commission President Ursula von der Leyen.

Speaking to representatives of French business at the Roland Garros stadium in Paris during a meeting organized by the business association MEDEF, von der Leyen emphasized that the rules of the game have changed.

According to her, Europe simultaneously faces expensive energy, fragmentation of the single market, complex regulations, and unfair competition. Under these conditions, the EU must restore companies' investment capabilities and, in the long term, make innovation, productivity, and business scaling the foundation of growth.

"Our aim is clear: to make Europe a continent that produces, invests and protects," the head of the European Commission stated.

She called on the EU to reduce administrative burdens on companies by 25%, and for SMEs by 35% by 2029. According to her, six already agreed rule-simplification packages (so-called Omnibuses) should save businesses about 6 billion euros per year, while all 12 packages together are expected to yield savings of approximately 17 billion euros.

Von der Leyen also warned of the need to respond more firmly to Chinese competition. She noted that imports from China to the EU grew by 45% over five years, while European exports to China are declining, with the EU's trade deficit with China reaching nearly 1 billion euros per day.

"But being a partner does not mean accepting permanent imbalances," she said, urging the EU to utilize available trade defense instruments if dialogue with Beijing yields no results.

Separately, von der Leyen called for directing European savings toward investments within the EU. Around 10 trillion euros of household funds are currently held in bank deposits. According to European Commission estimates, the proposed Savings and Investments Union could mobilize up to 470 billion euros in additional investment.

"But Europe does have savings. Unfortunately, those savings are sitting idle," she remarked.

The European Commission President also called for completing the single market, pointing out that internal barriers between EU member states can be equivalent to tariffs of up to 45% for goods and up to 110% for services.

Von der Leyen identified energy as one of the primary obstacles to Europe's competitiveness. Energy prices in the EU remain two to three times higher than in the US and China, while more than half of consumed energy still relies on imported fossil fuels.

"So, we must produce our own low-carbon energy in Europe," she said, calling for the simultaneous acceleration of renewable energy, nuclear generation, electrification, and power grid development.

Furthermore, von der Leyen stated that the EU must turn artificial intelligence into a driver of industrial productivity. The European Commission is mobilizing 20 billion euros to establish AI factories, with the first call attracting 77 applications across 16 countries at 60 sites.

Despite these serious challenges, she emphasized that the EU maintains strong core positions.