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2022 State of the Union speech

2022 State of the Union speech
14 September 2022

On Wednesday 14 September 2022, European Commission President von der Leyen delivered her annual State of the Union address to the European Parliament. This annual event, started in 2015 by President Juncker on the model of the annual State of the Union speech delivered by US Presidents to the American Congress, is the occasion to present the political priorities of the Commission and guide the preparation of the Commission's Work Programme for the coming year.
This year’s speech was influenced by the current events, and it was consequently centered on the war in Ukraine and the energy supply crisis in Europe. Other important topics covered by Von der Leyen are the Economic recovery, the EU Green Deal, and EU institutional reform. Below is more information on the main areas covered during the speech.

Russian invasion of Ukraine

President Von der Leyen put a strong emphasis on the swift and unified response given by the EU to the invasion of Ukraine, both in terms of welcoming refugees and providing financial assistance (€19 Billion provided by Team Europe so far). She highlighted that this effort is not just for Ukraine, it is an effort for all of Europe and the world at large. 
Von der Leyen announced in particular that the EU will provide €100 million for the rehabilitation of damaged Ukrainian schools and that Ukraine will be supported to ensure seamless access to the EU Single Market.
On the topic of sanctions against Russia, President Von Der Leyen reiterated that the EU stands with Ukraine, Moldova, Georgia, and the opposition in Belarus, and confirmed that these sanctions are there to stay.

Energy crisis

President Von der Leyen put an emphasis on the reduced dependency on Russian gas, mentioning, in particular, the fact that gas imports are down to 9% (compared to 40% in 2021), and affirming that the joint storage capacity for gas is filled at 84%.this diversification is due to an increase of gas imports from other countries such as the United States, Norway, and Algeria, defined by the Commission President as more reliable partners. This represents a switch for EU imports going from importing from pipelines to increasing the amounts of Liquified Natural Gas (LNG).
She announced a proposal to establish a cap on the revenues of companies producing electricity at a low cost and revealed that the Commission will propose to raise more than €140 Billion for member states to tackle the difficulties related to the increases in energy prices. Measures to reduce demand during peak hours and targeted support for households and businesses are also part of the package.

EU Green Deal and the European Hydrogen Bank

With REPowerEU, the Commission plans to double its 2030 target to produce ten million tons of renewable hydrogen in the EU, each year. This will be done via the creation of a market maker for hydrogen, in order to bridge the investment gap and connect future supply and demand. This will be done through the realization of a European Hydrogen Bank which will help guarantee the purchase of hydrogen, notably by using resources from the Innovation fund. It is an investment of up to €3 Billion.
On the green Deal, President Von der Leyen announced that as a response to the environmental disasters of last summer (events that will be remembered as a turning point according to the Commission President), the EU will push for an ambitious global deal at the UN Biodiversity conference in Montreal, and at the COP27 in Sharm el-Sheikh. In addition, to reinforce the reaction capacity of the EU, she announced that the EU will double its firefight capacity over the next year by purchasing 10 light amphibious aircrafts and three helicopters to add to the fleet.

Next Generation EU, Internal Market, and SMEs

Next Generation EU will keep boosting the confidence of European economies in the coming years. So far, 100 billion euros have been disbursed to Member States. This means: 700 billion euros still haven't flown into the economy, and will guarantee a constant stream of investments to sustain jobs and growth.
President Von der Leyen made reference to the Maastricht Spirit, supporting the idea that stability and growth can only go hand in hand. In order to ensure this, EU governments need an enabling business environment, a workforce with the right skills and access to raw materials our industry needs. The Commission will present in October new ideas for economic governance based on those principles.
In order to fight the effect of inflation and uncertainty, the Commission will put forward an SME Relief Package consisting of a single set of tax rules for doing business in Europe, as well as a revision of the Late Payment Directive (these are the cause of 1 in 4 bankruptcies according to the Commission). The President of the Commission also affirmed that in the future she will push for a European Sovereignty Fund in order to increase the Eu participation in important projects of common European interest.

Institutional Reform and Rule of Law

President Von der Leyen opened to the EU enlargement to the Western Balkans, Ukraine, Moldova, and Georgia, affirming that “the path towards strong democracies and the path towards our Union are one and the same”. She supported the call for a European Political Community, and announced that the Commission will present a Defence of Democracy package. 
In this direction, she reiterated that the Commission will protect the EU budget through the use of the conditionality mechanism, and ensure that only those that comply with EU values and laws may access funds. She also stated that the Commission will present measures to update the legislative framework for fighting corruption. 
Concerning the Conference on the Future of Europe, President Von der Leyen said the Commission plans to build up on the Citizens' Panels (defined by her as a central part of the Conference that will now become a regular feature of the EU democratic life) and the conclusions of the Conference. In this direction, she already sent a Letter of Intent to the President of the European Parliament and to Prime Minister Fiala, current holder of the rotating presidency of the EU, calling for the opening of a Convention on the EU constitutional treaties.

Image © European Commission

 

 

 

 

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