Brussels: Ties with Washington are one of the cornerstones of the European Union's foreign policy; however, protecting European interest is as vital, EU Commissioner Ursula von der Leyen said on Wednesday. Delivering a speech to a session of the European Parliament on economic and defensive challenges facing Europe, von der Leyen highlighted several pressing issues.
According to Kuwait News Agency, von der Leyen addressed the economic tensions arising from the US imposing a 70 percent tariff on the majority of European commerce, describing it as unprecedented in volume and span. She stated that while the EU is eager to resolve these issues through dialogue, it remains committed to protecting its interests.
Von der Leyen mentioned that recent discussions with US President Donald Trump regarding tariffs were "positive," with all parties seeking a framework to avoid tariffs that could negatively impact both economies. She also emphasized the EU's ongoing efforts to expand its global partnerships, including the goal to finalize a commercial agreement with India by the end of the year.
On the economic front, von der Leyen stressed the need for investment in innovative and emerging companies within the EU, noting that European entrepreneurs face challenges in accessing capital compared to their global counterparts. She called for legislative reforms to facilitate investment, citing that two-thirds of European companies find existing regulations to be obstacles to expansion.
Energy costs were another concern, with von der Leyen noting their impact on the competitiveness of European industry. She advocated for comprehensive energy plans and investments in electrical and storage networks to reduce dependency on Russian oil and gas by 2027.
Turning to defense, von der Leyen reported on Russia's recent large-scale attack on Ukraine, underscoring the threat to European security. She outlined the EU's measures to strengthen its defense capabilities, including investment tools worth EUR 800,000 available until 2030. Sixteen member states are seeking authorization to increase defense spending without exceeding deficit limits.
Von der Leyen also highlighted the potential of the (SAFE) mechanism, which offers EUR 150 billion in defense loans, and the importance of integrating Ukraine into the European defense supply chain. She noted that Ukraine's defense industry is currently operating at 60 percent capacity, and EU member states can use the SAFE instrument for direct imports to support Ukraine.