Special Address at the World Economic Forum: Building a New European Independence

Key Chapter Title List

1. Introduction: From Historical Lessons to Contemporary Opportunities—Europe Amid Geopolitical Shocks
2. The Trade Dimension of an Emerging Europe: Building Global Partnerships and De-risking
3. Internal Asset Integration: Three Strategic Focal Points—Regulation, Capital, and Energy
4. The Urgency Mindset: European Ambition and Key Industries in Global Competition
5. Security and Defense: The Increasingly Tight Link Between Economy and National Security
6. The Security Core of the Continent: Support for Ukraine and Strategic Stance

Document Introduction

Currently, the global order is undergoing a profound and lasting seismic transformation. This change is not a temporary fluctuation but marks the end of the old system, posing severe structural challenges to Europe. This speech document, based on the European Commission President's special address at the 2026 World Economic Forum, systematically elaborates on how Europe can transform this geopolitical shock into a strategic opportunity. The core lies in constructing a new type of European independence. This concept is not a passive reaction to recent events but stems from a deep reflection on historical lessons—as revealed by the 1971 Nixon Shock, over-reliance on external systems endangers one's own stability and prosperity. The document emphasizes that Europe must abandon nostalgia for the old order and a wait-and-see attitude, responding to permanent external changes with permanent internal reforms.

To achieve this goal, the report outlines three pillars for Europe's strategic transformation. First, in external economic relations, Europe is actively building a diversified, rules-based global partnership network, guided by the principles of fair trade, partnership, and sustainability, to achieve supply chain de-risking. Citing the newly signed EU-Mercosur Agreement as an example, the document points out that it creates the largest free trade area covering over 20% of global GDP. Furthermore, a series of landmark trade agreements are being advanced with India, Australia, Southeast Asian nations, and Middle Eastern countries, aiming to closely connect with today's and future centers of economic growth, ensuring Europe's first-mover advantage in the global economy.

Second, regarding internal integration and capacity building, the document proposes three core focal points. The first is creating a predictable 28th regime, aimed at establishing a single European company structure named EU Inc., which would completely eliminate barriers to cross-border business operations through a set of rules seamlessly applicable across the entire Union. The second is building a Savings and Investment Union by deepening and integrating capital markets to ensure capital flows efficiently to startups, SMEs, and innovative industries. The third is accelerating the construction of a truly interconnected and affordable Energy Union through massive investments in grid interconnections and domestic energy sources (nuclear and renewables), ending price volatility, manipulation, and supply shocks, thereby driving economic growth and ensuring independence with reliable, resilient, and cheap energy.

Finally, the document closely links economic independence with national security issues, stating that in the relentless global competition, Europe must demonstrate ambition in key areas concerning independence, with the defense industry being a prime example. The report discloses that European defense spending is increasing significantly, with a planned cumulative total of 800 billion euros by 2030. This has driven the market capitalization of European defense companies to triple since early 2022 and spawned three unicorn tech startups focused on AI battlefield intelligence systems and advanced dual-use military-civilian drones. All this signifies an unprecedented deep integration of economy and national security.

The conclusion of the report focuses the urgency of this ambition on the core security challenge of the continent—Russia's war of aggression against Ukraine. The document clearly states that Europe's goal is to ensure Ukraine can approach the negotiating table from a position of strength. To this end, Europe has decided to provide Ukraine with 90 billion euros in loans in 2026 and 2027 as part of its sustained, predictable macro-financial support. This move is not only a security commitment but also a strategic necessity for building a truly independent Europe capable of defending its values and interests. Overall, this document provides an authoritative and timely roadmap for understanding Europe's systemic strategic shift in the post-crisis era.