At the World Economic Forum in Davos today, European Commission President Ursula von der Leyen assessed the first quarter of the century and presented her plans for the next one. She said the Paris Agreement remains humanity's best hope. "So Europe will stay the course and continue to work with all nations that want to protect nature and stop global warming. Equally, all continents will have to seize the opportunities of artificial intelligence and manage its risks. We must look for new opportunities wherever they arise. The moment has come when we must engage outside the blocks and taboos. And Europe is ready for change," she said in a speech, part of which we are reproducing here:
To sustain its growth in the next quarter century, Europe needs to shift gears. First, Europe needs a deep and liquid capital markets union. European household savings amount to almost €1.4 trillion, compared to just over €800 billion in the US.
Secondly, we need to make it much easier to do business across Europe. Too many of our top talents are leaving the EU because it is easier to develop their companies elsewhere.
The third foundation is energy. Clean energy is the medium-term answer because it is cheap, creates good domestic jobs and strengthens our energy independence. Already today, Europe generates more electricity from wind and solar power than from all fossil fuels combined. But we still need to work to pass on these benefits to businesses and people.
The coming years will be crucial beyond Europe. All continents will need to accelerate the transition to net zero consumption and tackle the growing burden of climate change. Its impact cannot be ignored. Heat waves in Asia. Floods from Brazil to Indonesia, from Africa to Europe. Forest fires in Canada, Greece and California. Hurricanes in the US and the Caribbean. Climate change is still at the top of the global agenda. From decarbonisation to nature-based solutions. From building a circular economy to developing natural credits. The Paris Agreement remains humanity's best hope. So Europe will stay the course and continue to work with all nations that want to protect nature and stop global warming. Equally, all continents will have to seize the opportunities of artificial intelligence and manage its risks. In the face of such challenges, we are not racing against each other, we are racing against time. Even when competition is fierce, we must join forces. And Europe will continue to seek cooperation - not only with our long-standing like-minded friends, but with every country with which we share common interests. Our message to the world is simple: where mutual benefits are in sight, we are ready to join with you. If you want to modernise your cleantech industry, if you want to improve your digital infrastructure - Europe is open for business.
And as the competition between major powers intensifies, I see a growing interest around the world in working more closely with us. In the last two months alone, we have entered into new partnerships with Switzerland, Mercosur and Mexico. This means that 400 million people in Latin America will soon be involved in a privileged partnership with Europe. These agreements have been years, if not decades, in the making. So why are they happening now? Not only because Europe is a large and attractive market. But also because in Europe, what you see is what you get. We play by the rules. Our deals have no hidden liabilities. And while others are only interested in exports and mining, we want local industry to flourish in our partner countries. Because that's in our interest too. So we diversify our own supply chains. And that's why Europe's offer is so attractive, all over the world. From our neighbours in Africa, who are working with us to develop local clean technology and clean fuel value chains, to the vast Asia-Pacific region. That is why the first journey of my new Commission will be to India. Together with Prime Minister Modi, we want to improve our strategic partnership with the world's largest country and democracy.
I believe that we should also seek mutual benefit in talking to China. When China joined the WTO 25 years ago, the impact of China's growing exports was called the 'China shock'. Today, some are talking about a second China shock - because of state-sponsored overcapacity. We must, of course, respond to this. Defensive trade measures are being taken around the world, including in the Global South, in response to the Chinese market disruption. That is also why Europe has taken measures, for example, in the area of electric vehicles. At the same time, I have always stressed that we are ready to continue our discussions. And we will continue to remove the risks to our economy. Many believe - including in China - that it would be in China's long-term interest to manage its economic imbalances more responsibly. That is also our view. And I believe we need to work constructively with China - to find solutions in our common interest. In 2025, it will be 50 years since our Union established diplomatic relations with China. I see this as an opportunity to establish and deepen our relations with China and, where possible, to expand our trade and investment ties. It is time to strive for a more balanced relationship with China in a spirit of fairness and reciprocity.
This new cooperation with countries around the world is not only an economic necessity but also a message to the world. It is Europe's response to growing global competition. We want to cooperate more with all those who are open to it. And this, of course, includes our closest partners. I am thinking, of course, of the United States of America. No other economy in the world is as integrated as ours. European companies in the US employ 3.5 million Americans. And another million American jobs depend directly on trade with Europe. Entire supply chains span both sides of the Atlantic. For example, American aircraft are made with control systems and carbon fibre from Europe. American medicines are made from chemicals and laboratory instruments that come from our side of the Atlantic. At the same time, Europe imports twice as many digital services from the US as we do from the entire Asia-Pacific region. Two-thirds of all US assets abroad are in Europe. And the US supplies us with more than 50 % of liquefied natural gas. The volume of trade between us is 1.5 trillion euros, representing 30 % of world trade. For both sides, the stakes are high. Our priority will therefore be to establish early cooperation, discuss common interests and be ready to negotiate. We will be pragmatic, but we will always stick to our principles to protect our interests and promote our values - that is the European way.
The rules of engagement between world powers are changing. We should not take anything for granted. And while some in Europe may not like this new reality, we are prepared to deal with it. Our values have not changed. But to defend those values in a changing world, we must change the way we act. We must look for new opportunities wherever they arise. The moment has come when we need to engage beyond blocks and taboos. And Europe is ready for change.
Full speech Ursula von der Leyen.
europa.eu/ gnews - RoZ
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