European Commission President Ursula von der Leyen on Wednesday told EU lawmakers that Europe is confronting a set of existential challenges from Russia, shifting global trade tensions and the actions of other major powers, and must use what she called an "independence moment" to defend its values and security.
In a State of the Union address in Strasbourg, von der Leyen announced a package of measures to bolster Ukraine’s defense, pressed for new sanctions targeting Russian energy revenues, and said the commission will consider trade restrictions and sanctions on Israel over the war in Gaza. She defended a recent tariff deal with U.S. President Donald Trump — which included a 15% duty rate on most European exports to the United States — saying the agreement protects European jobs and business ties.
"Europe is in a fight," von der Leyen told lawmakers. "A fight for our values and our democracies. A fight for our liberty and our ability to determine our destiny for ourselves. Make no mistake — this is a fight for our future." She warned that "battle lines for a new world order based on power are being drawn right now" and said the EU must secure its place amid ambivalence or hostility from other major powers.
Turning to the war in Ukraine, now in its fourth year, von der Leyen said Russian President Vladimir Putin shows no sign of ending the conflict and that the EU must increase pressure to bring Russia to the negotiating table. The commission and EU member states are working on a new set of sanctions aimed at Russian energy revenues, she said. She also proposed using frozen Russian assets being held in Europe — about €200 billion in a Belgian clearing house — to address Ukraine’s financial needs. Interest earned on those assets, around €3.5 billion last year, is already being used to support Ukraine, she said, and officials are considering a "reparations loan" for damage inflicted by Russia.
Von der Leyen announced the creation of a "drone alliance" with Ukraine, citing the decisive role that drones have played in the conflict, and allocated €6 billion to the effort. She said the EU will seek "more sanctions" and "more pressure" on Moscow.
She also condemned an incident earlier Wednesday in which Poland reported that multiple Russian drones entered its airspace and were shot down with assistance from NATO allies. "Europe stands in full solidarity with Poland," von der Leyen said, calling the incursion a "reckless and unprecedented violation of Poland and Europe's airspace."
On the Middle East, the commission president said she would pursue measures to limit some financial support to Israel and to impose trade restrictions and sanctions over the conflict in Gaza. Breaking with her traditionally strong pro-Israel posture, von der Leyen said the suffering in Gaza, particularly of children and families, "has shaken the conscience of the world," and that "man-made famine can never be a weapon of war. For the sake of the children, for the sake of humanity. This must stop." She also announced plans for a new Palestinian donor group focusing on Gaza reconstruction.
Addressing criticism of the tariff agreement with Washington, von der Leyen said the EU depends on the United States as a major trading partner and that the deal improves the position of European businesses compared with other countries that received less favorable terms. "Millions of jobs depend on" the transatlantic relationship, she said, adding that she would not "gamble with people's jobs and livelihoods."
Von der Leyen, a 66-year-old former German defense minister and the commission's political appointee, used the speech to underscore the executive branch's role in proposing laws and guiding policy for the 27-member bloc, which governs rules affecting some 450 million people. She framed the address in a broader context of recent EU responses to crises, including measures to weather the COVID-19 pandemic, reduce dependency on Russian energy, and manage trade tensions with traditional allies.
Lawmakers reacted with applause at several points in the address, including the plans to bolster Ukraine and the proposed donor group for Palestinian rebuilding. The commission must now work with EU member states to translate von der Leyen’s proposals into concrete legislation and coordinated action, including finalizing any new sanctions packages and the mechanism for using frozen assets.
The speech sets up a period of intense political debate in Brussels and among national capitals over how far the EU will go in restricting trade with Israel, deepening economic pressure on Russia, and balancing economic ties with the United States against strategic autonomy. Von der Leyen framed those debates as part of a broader effort to ensure Europe can "determine our destiny for ourselves" amid a shifting global order.