Von der Leyen: Deadline for Completing the EU Single Market by 2028!

It is time to rid ourselves of dirty Russian fossil fuels and finally complete the job of establishing the EU Single Market. These are the main messages to the business community that President of the European Commission Ursula von der Leyen delivered in her State of the Union address this year at the European Parliament in Strasbourg, France.

Europe’s greatest strength is the single market, but there is still work to be done; it is still unfinished, the Commission President stated, adding that European citizens, especially businesses, want the free movement of goods, services, capital, and innovation.

Barriers worse than tariffs

– However, barriers still exist. So many that the International Monetary Fund estimates that internal barriers within the single market are equivalent to 45% tariffs on goods and astonishing tariffs of up to 110% on services – von der Leyen warned, sending a message to EU parliamentarians to think carefully about what we are missing. Examples, she emphasized, are all around us, from start-ups that cannot quickly expand their businesses to large investments that are delayed or relocated from Europe due to bureaucracy.

– Therefore, we need to build the single market in three key sectors: finance, energy, and telecommunications. Thus, we are presenting the Single Market Plan by 2028, with clear political deadlines for capital, services, energy, and telecommunications – von der Leyen highlighted.

Investments without borders

Speaking about the single market, von der Leyen announced that work is also underway to resolve the issue of the 28th regime and freedom for knowledge and innovation. Let us recall, the 28th regime is a key regulatory framework that will enable cross-border investments and facilitate business within the EU. It involves harmonizing legal frameworks and reducing administrative barriers so that start-ups, technology companies, and investors can operate without unnecessary complications. Europe must be a place where innovation knows no borders, the President stated. On the other hand, the concept of the Fifth Freedom is related to the freedom of knowledge and innovation. We must enable researchers, innovators, and young entrepreneurs to develop their ideas in Europe, so that their knowledge does not leave our continent but becomes a driving force for our economy, von der Leyen announced.

Energy highways

A special part of the speech was dedicated to energy issues, and the message could not have been clearer.

– It is time to rid ourselves of dirty Russian fossil fuels – Ursula von der Leyen stated from the podium, noting that the Commission knows well what lowers prices, and that is, she says, clean domestic energy. We must, she continued in that tone, produce more domestic renewable energy, with nuclear energy as the base.

– We must urgently modernize and invest in our infrastructure and our interconnection networks. Therefore, we will propose a new package of measures for networks to strengthen our network infrastructure and accelerate the issuance of permits – von der Leyen announced, introducing yet another new initiative called Energy Highways. She explained how Energy Highways will enable the smooth functioning of key infrastructure and the distribution of energy from renewable sources, adding that the Commission’s goal is for every consumer, every city, and every industry to have access to safe and stable energy, without interruptions and without dependence on external, unreliable sources.

Von der Leyen emphasized that the energy transition and the completion of the single market are not isolated projects but part of a broader strategy.

– We need a Europe that is energy independent, economically strong, and technologically competitive. This means investing in renewable energy, modernizing networks, enabling cross-border investments, and removing administrative barriers. This is our path to a safe, prosperous, and sustainable Europe – she stated.

Housing crisis

At the podium, she addressed another serious issue, the housing crisis in the EU. As she said, building permits issued have fallen by more than 20% in five years. This is more than just a housing issue; it is a social crisis that threatens cohesion and competitiveness, von der Leyen believes, adding that neither nurses, nor teachers, nor firefighters can live where they work, students are dropping out because they cannot afford rent, and young people are delaying starting families.

– Therefore, we will present the first European Affordable Housing Plan to make apartments more affordable, sustainable, and of higher quality – she announced in her speech and moved on to the topic of the automotive industry.

The automotive industry, the foundation of the European economy, is also changing. However, she noted and emphasized that Europeans want affordable, electric, but above all European cars, and a new initiative is also coming in this regard.

Small EU e-cars

– The new initiative for Small Affordable Cars will promote the production of clean, efficient, economical, and European vehicles, preserving jobs and ensuring competitiveness against global manufacturers – Ursula von der Leyen stated.

She also touched on the tech industry and emphasized that artificial intelligence is key to European technological independence. The EU is intensively investing in AI giga factories, which enable start-ups to develop and apply advanced models, and encourages the private sector to get involved. The focus is also on clean industry: from steel to batteries, Europe must retain production within the borders of the EU.

The Commission plans, she announced, a package of 1.8 billion euros for battery production, and in public procurement, it introduces the criterion of “made in Europe” to increase demand for European products. She also mentioned sustainability, and for sustainable competitiveness, a circular economy and rapid implementation of key laws are necessary, while the Industrial Accelerator will speed up the development of strategic sectors and technologies. Digital and clean technology need to be faster, smarter, and more European, von der Leyen believes.

When we talk about competitiveness and independence, we cannot overlook our relations with the USA, she continued, adding that we export goods worth over 500 billion euros to that country every year, and millions of jobs depend on it.

– As President of the Commission, I will never risk jobs or people’s livelihoods. The agreement we reached during the summer ensures stability and market access for our industries. We have brought European companies into a relative advantage as some of our competitors face higher American tariffs.

Although the base value of products may be lower for others, the exceptions and additional rates we have secured give Europe the best possible agreement. This is crucial security in a time of global uncertainty – she said, adding that, despite everything, she does not believe in ‘tariffs as a tool, as they are taxes that harm the economy’.

Tariffs are taxes

She also spoke about how the global context emphasizes the importance of agreements: China is surrounded by alliances with Russia and North Korea, while Putin publicly praises the increasingly close relations with Beijing. This shows, she emphasizes, the changing geopolitical landscape and creates an imperative for European independence.

– Europe must diversify its partnerships and trade flows. Already 80% of our trade takes place with countries other than the USA, which means we must seize new opportunities and ensure stability through bilateral agreements, as has been done with Mexico and Mercosur. By the end of the year, we plan to complete negotiations on a historic agreement with India and build a coalition of like-minded countries to reform the global trading system. Trade allows us to strengthen supply chains, open markets, and reduce dependence. Europe must be the first choice of the world. Only then can we ensure economic security, competitiveness, and global influence, the President of the Commission believes.

Let’s buy European

At the end of her speech, she touched on food production and prices, which, as she says, are key for Europe, and she announced a new initiative in this regard, this time a campaign, Buy European!

– Our farmers and fishermen produce high-quality food at affordable prices, preserving land, seas, and biodiversity. We must ensure fair prices and fair profit, and strengthen the implementation of legislation against unfair trading practices – she concluded in her speech.