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But the truth is also that we will only be able to capitalise on this opportunity if
we recognise that this change is permanent. Of course, nostalgia is part of our human story. But
nostalgia will not bring back the old order. And playing for time – and hoping for things to revert soon
– will not fix the structural dependencies we have. So my point is: If this change is permanent, then
Europe must change permanently too. It is time to seize this opportunity and build a new independent
Europe. (Special Address by President von der Leyen at the World Economic Forum
Davos, 20 January 2026)
Ursula von der Leyen is no stranger to the WEF; nor has she been
reluctant to strongly describe a vision for Europe and European
leadership that leverages both its culture and practices as they have
emerged after 1945. In 2024, von der Leyen offered trust in a techno-bureaucracy
guiding a rationalized process embedding normatively infused values.
This techno-bureaucracy interlinked with apparatus of political, social
and economic collectives within an accountability based system of
oversight and compliance grounded in the objective of realizing public
policy (President von der Leyen establishes fourteen Project Groups to deliver on political priorities). In 2025 President von der Leyen offered both a defense of the European project and a rationale for its critical importance for the global community. t is this project--the European vision for ordering itself and at least
that potion of the world (or its pathways to production)--which werechallenged internally by key stakeholders, and externally by a
trio of threats. The first is that of the United States which has
embarked far more aggressively on a different path toward the management
of economic and social relations. The second is that of the Chinese whose own
Marxist-Leninist world view threatens the breadth of the influence of
Europe and its normative projects both on the European periphery and
along its production chains. And the third is the threat that Russia
poses to and as Europe (Special Address by President von der Leyen at the World Economic Forum).
In 20206, President von der Leyen shifts gears entirely (Special Address by President von der Leyen). 2026 has proven to be especially challenging for Europe, or better, for the idea of Europe in the world and as a driving force, a vanguard element, of the progress of social relations within the community of nations and in globalization. And like Canada's Prime Minister, President von der Leyen looks at the state of the global community, at its fracture; like the Canadian Prime Minister President von der Leyen now seeks not accommodation, not a defense of its structures. She seeks independence for Europe. There are significant parallels between the remarks of President von der Leyen and that of Canadian Prime Minister Carney. But where the Canadian Prime Minister spoke to the role of middle powers in fashioning a sort of rump miltilateral rules based ordering in a world that is permanently fractures in order to jump start a post-global Bandung Conference ordering, President von der Leyen speaks with the ambition of a higher level party, and one with aspirations to ascend further in the post-global pecking order.
To those ends President von der Leyen would protect the territorial integrity of Europe--at least that part of Europe that is not currently subject to Russian territorial claims (with respect to which the response is more nuanced). "First principle: full solidarity with Greenland and the Kingdom of Denmark. The sovereignty and integrity of their territory is non-negotiable. Second, we are working on a massive European investment surge in Greenland." (Special Address by President von der Leyen). But that is bound up in the "new" security multilateralism that President von der Leyen advances, but now wrapped within the emerging dominant discourse of sovereignty: "I believe Europe needs to adjust to the new security architecture and realities that we are now facing. This is why Europe is preparing its own security strategy, which we plan to publish later this year. As part of this, we are upgrading our Arctic strategy too. And at the heart of this will be the fundamental principle: It is for sovereign people to decide their own future." (Ibid.). Within this context, and mirroring the much freer language of President Trump in his address, President von der Leyen emphasizes that Europe considers "the people of the United States not just our allies, but our friends." (Ibid.), and by implication, not its leaders. ("Engaging in dialogue with our friends and partners, also with adversaries if necessary. The point is that the world has changed permanently. And we need to change with it"). And as for Russia, challenges both to the Russians and the United States:
Above all, it reaffirms Europe's unwavering commitment to the security, defence, and European future of Ukraine. In parallel, we decided to permanently immobilise the Russian assets and that we reserve the right to make use of them. This should serve as a stark reminder to Russia. And a message to the world: Europe will always stand with Ukraine. Until there is a just and lasting peace. (Special Address by President von der Leyen)
Whether this is possible remains to be seen, but a stance is the first step, and funding that stance the second.
Beyond that President von der Leyen speaks to independence "On partnerships. On prosperity. And
security." (Ibid). She would also protect and enhance the economic independence of Europe--and here from the two hungry predators at Europe's door--the United States and China. President von der Leyen also describes an ambitious plan to carve out its own advantaged trading areas in Latin America, South Asia and Africa. "This agreement sends a powerful message to the world. That we are choosing fair trade over tariffs. Partnership over isolation. Sustainability over exploitation. And that we are serious about de-risking our economies and diversifying our supply chains." (Special Address by President von der Leyen).
President von der Leyen describes the reconstruction of the administration of Europe, especially with respect to its economic life; these include the deepening of EU wide markets for enterprise organization, investment and capital. "Focal point number one is to create a conducive and predictable regulatory environment." (Ibid.). That involves creating a singular production platform across Europe.
Ultimately, we need a system where companies can do business and raise financing seamlessly across Europe – just as easily as in uniform markets like the US or China. If we get this right – and if we move fast enough – this will not only help EU companies grow. But it will attract investment from across the world. (Special Address by President von der Leyen).
Related to this initiative is the second focus for a renewed and more productive Europe. This second focus targets investment and capital. "We are now building the Savings and Investment Union. We need a large-scale, deep and liquid capital market that attracts a wide range of investors. This will allow businesses to find the funding they need – including equity – at lower cost here in Europe." (Ibid.).
President von der Leyen then suggests the third focus--cheap and sustainable energy. "Third priority: building an interconnected and affordable energy market – a true energy union. Energy is a chokepoint – for both companies and households. "This is our Affordable Energy Action Plan. For example, we are investing massively in our energy security and independence, with interconnectors and grids – this is for the homegrown energies that we are trying to promote as much as possible, nuclear and renewables. To bring down prices and cut dependencies" (Ibid.).
Europe, it seems, like the United States, is looking forward to a period of national rejuvenation in ways that may it more attractive to economic activity that tends to shy away, and perhaps, in the process retain its capacity for competitive innovation. Lastly, President von der Leyen notes, Europe must move from a focus on sustainable to sustainable and affordable energy. That is a tall order indeed and one that will require a bit of introspection among the elites that drive regulatory approaches in the Member States and within the EU bureaucracy.
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The Davos speeches considered for 2026 include the following:
1. Davos 2026 Part 1--Remarks of Canadian Prime Minister Mark Carney
2. Davos 2026 Part 2--Remarks of U.S. President Donald Trump
3. Davos 2026 Part 3--Remarks of China's Vice Premier He Lifeng
4. Davos 2026 Part 4-- Remarks of EU President Ursula von der Leyen
Special Address by President von der Leyen at the World Economic Forum
Davos, 20 January 2026
President Brende, dear Børge, thank you very much for the warm welcome.
Your Majesties,
Excellencies,
Ladies and Gentlemen,
It is now 55 years since the first meeting here in Davos. The idea of the founder, Klaus Schwab, was
to create a platform to discuss the issues and the ideas of the day. Of course, the world has
transformed completely since 1971. But the original idea of Davos has remained, as we have just
heard in the speeches. So I was delighted that you have gone back to your roots with this year's
theme – A Spirit of Dialogue. Because this spirit is all the more important in a world that is more
fractured and more fractious than ever. 1971 was the year of the so-called Nixon shock and the
decision to delink the US dollar from gold. In an instant, the foundations of the Bretton Woods
System and the entire global economic order – set up after the war – effectively collapsed. But it also
had two major effects. It inadvertently created the conditions for what would become a truly global
order. And it provided a sharp lesson for Europe on the need to strengthen its economic and political
power. It was a warning to reduce our dependencies – in this case on a foreign currency.
The world may be very different today, without any question. But I believe the lesson is very much
the same. That geopolitical shocks can – and must – serve as an opportunity for Europe. In my view,
the seismic change we are going through today is an opportunity, in fact, a necessity to build a new
form of European independence. This need is neither new nor a reaction to recent events. It has been
a structural imperative for far longer. So when I used this term – European independence – around a
year ago, I was surprised at the sceptical reactions. But less than one year on, there is now a real
consensus around this. The sheer speed and almost unthinkable scale of the change have driven this
– but the underlying imperative is still the same.
The good news is: We acted immediately. Whether on energy or raw materials, defence or digital –
we are moving fast. But the truth is also that we will only be able to capitalise on this opportunity if
we recognise that this change is permanent. Of course, nostalgia is part of our human story. But
nostalgia will not bring back the old order. And playing for time – and hoping for things to revert soon
– will not fix the structural dependencies we have. So my point is: If this change is permanent, then
Europe must change permanently too. It is time to seize this opportunity and build a new independent
Europe.
Ladies and Gentlemen,
This new Europe is already emerging. On Saturday, I was in Asunción, in Paraguay, to sign the EU-
Mercosur trade agreement. It was a breakthrough after 25 years of negotiations. And with it, the EU
and Latin America have created the largest free trade zone in the world. A market worth over 20% of
global GDP. 31 countries with over 700 million consumers. Aligned with the Paris Agreement. This
agreement sends a powerful message to the world. That we are choosing fair trade over tariffs.
Partnership over isolation. Sustainability over exploitation. And that we are serious about de-risking
our economies and diversifying our supply chains. That will not stop in Latin America. Last year, we
reached new agreements with Mexico, Indonesia and Switzerland – our host country. We are working
on a new free trade agreement with Australia. We are also advancing with the Philippines, Thailand,
Malaysia, the UAE – and more. And right after Davos, I will travel to India. There is still work to do.
But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that
would create a market of 2 billion people, accounting for almost a quarter of global GDP. And,
crucially, that would provide a first-mover advantage for Europe with one of the world's fastest
growing and most dynamic continents. Europe wants to do business with the growth centres of today
and the economic powerhouses of this century. From Latin America to the Indo Pacific and far
beyond, Europe will always choose the world. And the world is ready to choose Europe.
Ladies and Gentlemen,
This reality also reflects the fact that Europe has all the assets it needs to attract investment – the
savings, the skills, and the innovation – with our AI Factories and Gigafactories and the applications
that are necessary, the ‘AI first' principle. What we need is to mobilise collectively these assets to
their full potential. And to focus on the essential. Focal point number one is to create a conducive and
predictable regulatory environment. We live in an age where capital and data can cross Europe in a
second. And business must be able to move just as freely. But as things stand, too many companies
have to look abroad to grow and scale up – partly because they face a new set of rules every time
they expand into a new Member State. So while on paper the market of 450 million Europeans is open
to them, it is far more complicated in reality. And that acts as a handbrake on the growth and profit
potential of companies. This is why we need a new approach. We will soon put forward our 28th
regime. The ultimate aim is to create a new truly European company structure. We call it EU Inc., with
a single and simple set of rules that will apply seamlessly all over our Union. So that business can
operate across Member States much more easily. Our entrepreneurs, the innovative companies, will
be able to register a company in any Member State within 48 hours – fully online. They will enjoy the
same capital regime all across the EU. Ultimately, we need a system where companies can do
business and raise financing seamlessly across Europe – just as easily as in uniform markets like the
US or China. If we get this right – and if we move fast enough – this will not only help EU companies
grow. But it will attract investment from across the world.
Which brings me to the second focus – investment and capital. We are now building the Savings and
Investment Union. We need a large-scale, deep and liquid capital market that attracts a wide range of
investors. This will allow businesses to find the funding they need – including equity – at lower cost
here in Europe. We have made proposals on market integration and supervision to ensure our
financial market is more integrated. This covers trading, post-trading, and asset management – as
well as driving innovation and making our supervisory framework more efficient. This will help ensure
that capital flows where it is needed – to scaleups, to SMEs, to innovation, to industry.
Third priority: building an interconnected and affordable energy market – a true energy union. Energy
is a chokepoint – for both companies and households. Just look at the dispersion of prices across
European electricity hubs. Europe needs an energy blueprint that pulls together all the parts. This is
our Affordable Energy Action Plan. For example, we are investing massively in our energy security and
independence, with interconnectors and grids – this is for the homegrown energies that we are trying
to promote as much as possible, nuclear and renewables. To bring down prices and cut dependencies.
To put an end to price volatility, manipulation and supply shock. But we now need to speed up this
transition. Because homegrown, reliable, resilient and cheaper energy will drive our economic growth,
deliver for Europeans and secure our independence.
Ladies and Gentlemen,
Whether on trade or business, capital or energy – Europe needs an urgency mindset. Our starting
point is good. We are home to global champions in fields ranging from wind power to next-generation
batteries. From aerospace to the industrial machines that are essential to build chips or advanced
weapons. Our companies are taking up AI at the same pace as their US peers. Europe is in the race
for the key technologies of tomorrow. But as global competition gets ruthless, we must show real
ambition – especially in those sectors vital for our independence. Take defence, for example. We have
done more on defence in the last year than in decades before. We have started a surge in defence
spending – up to €800 billion until 2030. Member States are stepping up their investment at record
levels. This has helped to triple the market value of European defence industry companies since
January 2022. We now have three leading European defence tech startups that have reached unicorn
valuation. They are working on AI-powered software and systems for battlefield intelligence. Or on
advanced dual-use and surveillance drones. So they are also driving innovation and investment in
Europe's defence-tech-industrial base. All of this would have been unthinkable even a few years ago.
This now only shows how economy and national security are more linked than ever. But also, what we
can do when Europeans have the will to match the ambition.
So, Ladies and Gentlemen,
This need for ambition is most important when it comes to the security of our continent. In just over a
month, we will mark the fourth anniversary of Russia's war of aggression against Ukraine. Four years
on, Russia shows no sign of abating. No sign of remorse. No sign of seeking peace. On the contrary.
Russia is intensifying its attacks. Killing civilians every day as we speak. Just last week, its bombing of
Ukraine's energy infrastructure left millions facing darkness, cold, and water shortages. This must
end. We all want peace for Ukraine. We recognise President Trump's role in pushing the peace
process forward, and we will work closely with the United States. We all agree that Ukraine must
therefore be in a position of strength to go to the negotiation table. This is why we Europeans have
decided to provide Ukraine with a loan of €90 billion for 2026 and 2027. With this support, we make
sure that Ukraine can: bolster its defence on the battlefield; strengthen its defence capabilities for a
peace agreement; and keep basic services running. Above all, it reaffirms Europe's unwavering
commitment to the security, defence, and European future of Ukraine. In parallel, we decided to
permanently immobilise the Russian assets and that we reserve the right to make use of them. This
should serve as a stark reminder to Russia. And a message to the world: Europe will always stand
with Ukraine. Until there is a just and lasting peace.
Ladies and Gentlemen,
I have spoken a lot today about European independence. On partnerships. On prosperity. And
security. So I would like to conclude with Greenland. An issue which cuts to the heart of all three of
these imperatives. When it comes to the security of the Arctic region, Europe is fully committed. And
we share the objectives of the United States in this regard. For instance, our EU member Finland –
one of the newest NATO members – is selling its first icebreakers to the US. This shows that we have
the capability right here, in the ice so to speak. That our northern NATO members have Arctic-ready
forces right now. And above all, that Arctic security can only be achieved together. This is why the
proposed additional tariffs are a mistake especially between long-standing allies. The EU and US have
agreed to a trade deal last July. And in politics as in business – a deal is a deal. And when friends
shake hands, it must mean something.
Ladies and Gentlemen,
We consider the people of the United States not just our allies, but our friends. And plunging us into a
dangerous downward spiral would only aid the very adversaries we are both so committed to keeping
out of the strategic landscape. So our response will be unflinching, united and proportional. But
beyond this, we have to be strategic about how we approach this issue. This is why we are working on
a package to support Arctic security. First principle: full solidarity with Greenland and the Kingdom of
Denmark. The sovereignty and integrity of their territory is non-negotiable. Second, we are working
on a massive European investment surge in Greenland. We will work with Greenland and Denmark
hand in hand to see how we can further support the local economy and infrastructure. Third, we will
work with the US and all partners on wider Arctic security. This is clearly in our shared interest, and
we will step up our investment. In particular, I believe we should use our defence spending surge on a
European icebreaker capability and other equipment vital to the Arctic security. Fourth and in the
same spirit – we need to work with all of our regional partners to strengthen our common security.
This is why we will look at how to strengthen our security partnerships with partners such as the UK,
Canada, Norway, Iceland and others. Finally, I believe Europe needs to adjust to the new security
architecture and realities that we are now facing. This is why Europe is preparing its own security
strategy, which we plan to publish later this year. As part of this, we are upgrading our Arctic strategy
too. And at the heart of this will be the fundamental principle: It is for sovereign people to decide
their own future.
Ladies and Gentlemen,
When I started preparing for this year's address, security in the High North was not the main theme.
But in many ways, it feeds into the wider point I started with today. That Europe must speed up its
push for independence – from security to economy, from defence to democracy. Engaging in dialogue
with our friends and partners, also with adversaries if necessary. The point is that the world has
changed permanently. And we need to change with it.
Thank you. And long live Europe.
SPEECH/26/150
Press contacts:
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Arianna PODESTA (+32 2 298 70 24)
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