MEPs debate on the conclusions of the recent European Council meetings, in particular on a new European Competitiveness deal and the EU strategic agenda 2024-2029, on foreign relations issues and the current unstable geopolitical situation - the ongoing Russian war against Ukraine and the EU’s support for Ukraine’s defense, as well as the latest developments regarding Israel’s operation in Gaza and the escalating tensions in the Middle East. Ambiance shots and opening statement by Ursula von der LEYEN, President of the European Commission. This transcription is a result of an automatic process. Please check against delivery.

statement

Strasbourg

debate

plenary session

VON DER LEYEN, Ursula (DE, EC)

special meeting of the European Council 17-18 April 2024 (T)

Conclusions of the recent European Council meetings, in particular on a new European Competitiveness deal and the EU strategic agenda 2024-2029: Ambiance shots and opening statement by Ursula von der LEYEN, President of the European Commission

https://api.multimedia.europarl.europa.eu/documents/20125/75974337/1713766007982_I256031Chapters%5BSD-EN%5D.srt

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Thank you very much. Madam President, Honourable Members. Indeed, Competitiveness was the topic of the European Council, and leaders taking the floor recall that since the last European elections, our union has really weathered to a crisis of historic proportions. The COVID 19 health crisis and the war in Ukraine with a maiden Russia energy crisis. They could have turned into a dramatic economic and social crisis, but they didn't. And this was because of Europe's great resilience, but also because we put the right policies in place.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, 'Think of SURE. SURE saved 40 million European jobs. Think of Next Generation EU or Repower EU, which fast track the recovery and deployment of home-grown renewables. I have not forgotten that in 2020 many predicted massunemployment in Europe and long recession. It did not happen because we put the right policies in place and we acted decisively.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Instead, today, we have more people at work than at any other time in the European history. Unemployment is at an all time low, at less than 6%. Employment is at an all time high as more than 75%, and inflation is now close to our 2% target. So, dear colleagues, we have gone certainly through hell and high water, but in many respects we have come out stronger than five years ago.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Yet the shockwaves f this crisis have taken a toll on Europe's competitiveness. The business model of many European industries was based on supposedly cheap energy from Russia and trade with a growing China. Today we face a rogue Russia and a China struggling with domestic demand. And besides geopolitics, there are other trends that are impacting our competitiveness.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, In the last decade, Europe's labour productivity has risen by only 0.8% per year, compared to 1.1% in the United States. These trends can only be addressed with a concerted effort of both the European and the national level, and therefore, restoring our competitive edge must be at the heart of Europe's economic agenda of 2024 and beyond. And I am absolutely convinced that with the necessary push, we can set off a new surge of European competitiveness.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, At the European Council last week, we listened to some very good ideas of Enrico Letta on our single market. And today I want to look at four of the basic factors that determine costs, prices and productivity in Europe. Let me start with finance.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Since we took office almost five years ago, we have unleashed an unprecedented wave of public investment in strategic sectors. Take energy and clean tech. We are investing €400 billion from Next Generation EU, and we have approved over €550 billion in national public support for clean tech and energy investment. This has been crucial, but certainly public investment is not enough. The time has come for system solution that mobilises Europe's immense private capital, and an essential part of the solution is to complete the Capital Markets Union.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, €470 billion. This is the additional private investment we could raise every year if we completed the Capital Markets Union. €470 billion. The CMU, the Capital Markets Union, was launched around ten years ago and since the start of the mandate, we have made progress on many of its elements. For instance, we have made it easier for companies across Europe, specifically SMEs, to get listed on capital markets. But we have also faced a deadlock in Council on many crucial aspects of the Capital Markets Union.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, 'So it is more than welcome that the last European Council marks a turning point. Finally, we now have a clear mandate to move forward on three vital issues. The first is harmonising national rules on topics like insolvency. This will give investor trust the predictability they need. The second is we will design and create cross-border savings products for retail investors. And the third is the Commission has been tasked to strengthen supervision at European level of the most important market players.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, So the way forward is clear. We are to fund the new industrial revolution of our times. We must mobilise Europe's private capital. And now is the time to turn the political will into action.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, The second priority is reducing the cost of energy. Energy costs continue to affect our competitiveness, specifically for energy intensive industries. But the International Energy Agency tells us that there might be some relief in sight. You remember very well that last year during the energy crisis, there were many investments that have been done. Now, a large wave of the new LNG export projects is now coming to the market, and therefore we might soon be moving from a global shortfall of LNG to an abundance of LNG. And as a result we expect the gas prices to decrease, to fall.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, And this gives us space to further develop renewable energy. And I think it is a very telling success that last year for the very first time, the European Union was able to produce more electricity from wind than it did from gas. This was a big success

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, 'At this time point, I want to thank Parliament for all the work you've done. The work, for example, on the reform of the electricity market or the renewable energy directive. We must keep pushing to produce more cheap and clean energy in Europe. And we must listen to our industries what they need to reach the climate goals. We have done this in so-called clean transition dialogues with ten different sectors of industry, and one of the central demands is always energy infrastructure.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, 'Just take this one in the decade that is now. So in our decade now, our cross-border electricity transmission capacity must double. So this needs investments in smart grids, in charging infrastructure, but also cables, pipes, turbines, electrolysers, you just name it. We must build the physical backbone of the economy of the future in order to be competitive.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, The third priority is to address the labour and skills shortage that affects our economy. And it's obvious we have, as I said, a very low unemployment. So we need to train as many as possible of our unemployed, specifically have a look at youth unemployment, because as we have a very low unemployment, on average, we have a higher youth unemployment still than the average, every young person has great potential, even if it might be struggling with different obstacles of all kinds. Let's make sure that they get the chance they deserve.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, We also have to increase women's access to the labour market. Parents need infrastructure. It's very simple. Affordable and accessible childcare. Good schools, flexible working hours are an absolute must. And finally, we can offer more flexible solutions for silver workers to continue their careers. And we need to attract the right talents from abroad.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, So it's a whole bundle of activities that have to be done to address the skills shortage. We are investing €65 billion in skills. They are coming from Next Generation EU. They're coming from the European Social Fund. And skills must continue to be at the heart of our action.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Finally, let us never forget that Europe is a trading continent, and we derive a significant share of our prosperity from trade. If it is true that in the next decade, 90% of the most significant growth is happening in regions outside the European Union, well, we should tap into it. Our union is second to none in negotiating trade deals. We have the largest network of trade agreements in the world with a total of 74 countries. The value of EU trade through these agreements surpassed €2 trillion for the first time in 2022. And beyond exports, we need to secure our imports, for example, on the critical raw materials that our industry needs.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, But Honourable Members, global trade needs also to be fair. We need a global level playing field, and we need to address the risks that come with our openness. We need, for example, tools to address issues of overcapacity that is produced outside the European Union. I am speaking of structural overproduction and overproduction that is achieved to a large extent by subsidies, massive subsidies. This has to go somewhere. This overproduction.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Others are closing the markets. So our market is an attractive destination and we have to be very vigilant that our producers are not at risk to be forced out of the market. And we also need to involve developing economies around the world on this topic. Because there industrialisation is also threatened directly by overcapacity. We need a more structural response with our partners and work on this is starting in the G7.

SOUNDBITE (English), Ursula VON DER LEYEN, President of the European Commission, Honourable Members, the last five years have taught us something. Again we have surprised the sceptics and defied the doomsayers. Because for a strong Europe, if there is a will, there is a way. And our continent will continue to be the global beating heart of industry and innovation. Thank you and long live Europe.