President von der Leyen announces joint EU plan for decarbonisation & competitiveness

On 21 January 2025, President von der Leyen held a Special Address at the World Economic Forum in Davos. 'The cooperative world order we imagined 25 years ago has not turned into reality. Instead, we have entered a new era of harsh geostrategic competition' she said. The main take-aways from the Commission President's address are as follows:

- 'The race is on'- this also applies to AI, clean tech, quantum and space. The President calls for a balance between security and opportunities to innovate and increase our prosperity.

- 'The world is changing - so must we!': Europe needs to step up a gear, which is why Ms von der Leyen has asked Mario Draghi for a report on European competitiveness. Building on this, the European Competitiveness Compass will be presented on 29 January 2025. This Competitiveness Compass will determine the work to be done over the next five years, in three key areas (along the lines of the Draghi report): (1) Creation of an efficient capital market; (2) Simplification: far-reaching simplification/one single set of rules/“28th regime”; (3) Energy: Europe will have to invest in next-generation clean energy technologies, like fusion, enhanced geothermal, and solid-state batteries. A new plan ("Clean Industrial Deal") is to be presented in February.

- Climate change and Artificial Intelligence (AI): All continents are facing major challenges such as climate change and AI. The Commission President said, "On challenges like these, we are not in a race against each other, but in a race against time. Even in a moment of harsh competition, we need to join forces. The message to the world is simple: if there is a mutual benefit in sight, we are ready to work together". Ms von der Leyen sees a growing global interest in closer cooperation, citing the latest agreements (Switzerland, Mercosur, Mexico) as examples. The new EC's first trip will be to India, with aim to expand the strategic partnership with India.

- Mutual benefit should also be sought in talks with China. "It is time to pursue a more balanced relationship with China, in a spirit of fairness and reciprocity". The Commission President affirms that Europe wants more cooperation with all those who are open to it - including the U.S..

- European values: Ms von der Leyen does not see these values changing, but finds that in order to defend these values in a changing world, we need to change the way we act: "This is the moment to engage beyond blocs and taboos. And Europe is ready for change".

The President's concluding message is, "When Europe is united, things get done!".

The speech text can be accessed here and a video is available here.