State of the Union 2022 Address - PDF

STATE OF THE UNION 2022 BY THE VON DER LEYEN COMMISSION #SOTEU EN  STATE OF THE UNION 2022 INTRODUCTION Every year in September, the President of the European Commission delivers a State of...

STATE OF THE UNION 2022 BY THE VON DER LEYEN COMMISSION #SOTEU EN  STATE OF THE UNION 2022 INTRODUCTION Every year in September, the President of the European Commission delivers a State of the Union Address before the European Parliament, taking stock of achievements of the past year and presenting priorities for the year ahead. The President also sets out how the European Commission will address the most pressing challenges the European Union is facing. The speech is followed by a plenary debate. This kick-starts the dialogue with the European Parliament and the Council to prepare the Commission Work Programme for the following year. Anchored in the Treaty of Lisbon, the State of the Union Address is set out in the 2010 Framework Agreement on relations between the European Parliament and the European Commission, which also requires the President to send a Letter of Intent to the President of the European Parliament and the Presidency of the Council detailing the actions the European Commission intends to take by means of legislation and other initiatives until the end of the following year. Ursula von der Leyen, the President of the European Commission, delivered her third State of the Union Address on 14 September 2022. All material is available at ec.europa.eu/soteu2022. 2  STATE OF THE UNION 2022 CONTENTS CONTENTS ADDRESS..................................................................................................................................... 4 LETTER OF INTENT TO PRESIDENT ROBERTA METSOLA AND TO PRIME MINISTER PETR FIALA 30...................................................... ACHIEVEMENTS.......................................................................................................... 35 1. EUROPEANS STAND WITH UKRAINE, FOR DEMOCRACY AND PEACE.......................................................................................................................................... 38 2. OVERCOMING THE PANDEMIC WITH SOLIDARITY AND SCIENCE.................................................................................................................................... 50 3. LEADING THE GREEN, DIGITAL AND FAIR TRANSITIONS..... 56 4. THE PILLARS OF EUROPEAN DEMOCRACY.......................................... 69 TIMELINE.................................................................................................................................. 79 3 ADDRESS STATE OF THE UNION 2022  STATE OF THE UNION 2022 ADDRESS A UNION THAT STANDS STRONG TOGETHER INTRODUCTION Madam President, Honourable Members, My fellow Europeans, Never before has this Parliament debated the State of our Union with war raging on European soil. We all remember that fateful morning in late February. Europeans from across our Union woke up dismayed by what they saw. Shaken by the resurgent and ruthless face of evil. Haunted by the sounds of sirens and the sheer brutality of war. But from that very moment, a whole continent has risen in solidarity. At the border crossings where refugees found shelter. In our streets, filled with Ukrainian flags. In the classrooms, where Ukrainian children made new friends. From that very moment, Europeans neither hid nor hesitated. They found the courage to do the right thing. And from that very moment, our Union as a whole has risen to the occasion. Fifteen years ago, during the financial crisis, it took us years to As soon as Russian find lasting solutions. troops crossed the A decade later, when the global pandemic hit, it took us only weeks. border into Ukraine, But this year, as soon as Russian troops crossed the border into our response was Ukraine, our response was united, determined and immediate. united, determined And we should be proud of that. and immediate. 5  STATE OF THE UNION 2022 ADDRESS We have brought Europe’s inner strength back to the surface. And we will need all of this strength. The months ahead of us will not be easy. Be it for families who are struggling to make ends meet, or businesses, who are facing tough choices about their future. Let us be very clear: much is at stake here. Not just for Ukraine – but for all of Europe and the world at large. And we will be tested. Tested by those who want to exploit any kind of divisions between us. This is not only a war unleashed by Russia against Ukraine. This is a war on our energy, a war on our economy, a war on our values and a war on our future. Today - courage This is about autocracy against democracy. has a name, and And I stand here with the conviction that with courage and that name is solidarity, Putin will fail and Europe will prevail. Ukraine. THE COURAGE TO STAND WITH OUR HEROES Honourable Members, Today - courage has a name, and that name is Ukraine. Courage has a face, the face of Ukrainian men and women who are standing up to Russian aggression. I remember a moment in the early weeks of the invasion. When the First Lady of Ukraine, Olena Zelenska, gathered the parents of Ukrainian children killed by the invader. Hundreds of families for whom the war will never end, and for whom life will never go back to what it was before. We saw the first Lady leading a silent crowd of heartbroken mothers and fathers, and hang small bells in the trees, one for every fallen child. 6  STATE OF THE UNION 2022 ADDRESS And now the bells will ring forever in the wind, and forever, the innocent victims of this war will live in our memory. And she is here with us today! Dear Olena, it took immense courage to resist Putin’s cruelty. But you found that courage. Europe’s And a nation of heroes has risen. solidarity with Ukraine Today, Ukraine stands strong because an entire country has fought street by street, home by home. will remain unshakeable. Ukraine stands strong because people like your husband, President Zelenskyy, have stayed in Kyiv to lead the resistance – together with you and your children, dear First Lady. You have given courage to the whole nation. And we have seen in the last days the bravery of Ukrainians paying off. You have given voice to your people on the global stage. And you have given hope to all of us. So today we want to thank you and all Ukrainians. Glory to a country of European heroes. Slava Ukraini! Europe’s solidarity with Ukraine will remain unshakeable. From day one, Europe has stood at Ukraine’s side. With weapons. With funds. With hospitality for refugees. And with the toughest sanctions the world has ever seen. Russia’s financial sector is on life-support. We have cut off three quarters of Russia’s banking sector from international markets. Nearly one thousand international companies have left the country. The production of cars fell by three-quarters compared to last year. Aeroflot is grounding planes because there are no more spare parts. 7  STATE OF THE UNION 2022 ADDRESS The Russian military is taking chips from dishwashers and refrigerators to fix their military hardware, because they ran out of semiconductors. Russia’s industry is in tatters. It is the Kremlin that has put Russia’s economy on the path to oblivion. This is the price for Putin’s trail of death and destruction. And I want to make it very clear, the sanctions are here to stay. This is the time for us to show resolve, not appeasement. We will not only The same is true for our financial support to Ukraine. support with So far Team Europe have provided more than 19 billion euros finance – but in financial assistance. also empower And this is without counting our military support. Ukraine to And we are in it for the long haul. make the most of its potential. Ukraine’s reconstruction will require massive resources. For instance, Russian strikes have damaged or destroyed more than 70 schools. Half a million Ukrainian children have started their school year in the European Union. But many others inside Ukraine simply don’t have a classroom to go to. So today I am announcing that we will work with the First Lady to support the rehabilitation of damaged Ukrainian schools. And that is why we will provide 100 million euros. Because the future of Ukraine begins in its schools. We will not only support with finance – but also empower Ukraine to make the most of its potential. Ukraine is already a rising tech hub and home to many innovative young companies. So I want us to mobilise the full power of our Single Market to help accelerate growth and create opportunities. 8  STATE OF THE UNION 2022 ADDRESS In March, we connected successfully Ukraine to our electricity grid. It was initially planned for 2024. But we did it within two weeks. And today, Ukraine is exporting electricity to us. I want to significantly expand this mutually beneficial trade. We have already suspended import duties on Ukrainian exports to the EU. We will bring Ukraine into our European free roaming area. Our solidarity lanes are a big success. We will bring And building on all that, the Commission will work with Ukraine to ensure seamless access to the Single Market. And vice-versa. Ukraine into our European Our Single Market is one of Europe’s greatest success stories. Now it’s time to make it a success story for our Ukrainian friends, too. free roaming area. And this is why I am going to Kyiv today, to discuss this in detail with President Zelenskyy. Honourable Members, One lesson from this war is we should have listened to those who know Putin. To Anna Politkovskaya and all the Russian journalists who exposed the crimes, and paid the ultimate price. To our friends in Ukraine, Moldova, Georgia, and to the opposition in Belarus. We should have listened to the voices inside our Union – in Poland, in the Baltics, and all across Central and Eastern Europe. They have been telling us for years that Putin would not stop. And they acted accordingly. Our friends in the Baltics have worked hard to end their dependency on Russia. They have invested in renewable energy, in LNG terminals, and in interconnectors. 9  STATE OF THE UNION 2022 ADDRESS This costs a lot. But dependency on Russian fossil fuels comes at a much higher price. We have to get rid of this dependency all over Europe. Therefore we agreed on joint storage. We are at 84% now: we are overshooting our target. But unfortunately that will not be enough. We have diversified away from Russia to reliable suppliers. US, Norway, Algeria and others. Last year, Russian gas accounted for 40% of our gas imports. Today it’s down to 9% pipeline gas. But Russia keeps on actively manipulating our energy market. They prefer to flare the gas than to deliver it. This market is not functioning anymore. Last year, In addition the climate crisis is heavily weighing on our bills. Heat waves have boosted electricity demand. Droughts shut down hydro Russian gas and nuclear plants. accounted for As a result, gas prices have risen by more than 10 times compared 40% of our gas to before the pandemic. imports. Today Making ends meet is becoming a source of anxiety for millions of it’s down to 9% businesses and households. pipeline gas. But Europeans are also coping courageously with this. Workers in ceramics factories in central Italy, have decided to move their shifts to early morning, to benefit from lower energy prices. Just imagine the parents among them, having to leave home early, when the kids are still sleeping, because of a war they haven’t chosen. This is one example in a million of Europeans adapting to this new reality. 10  STATE OF THE UNION 2022 ADDRESS I want our Union to take example from its people. Reducing demand during peak hours will make supply last longer, and it will bring prices down. This is why we are putting forward measures for Member States to reduce their overall electricity consumption. But more targeted supported is needed. For industries, like glass makers who have to turn off their ovens. Or for single parents facing one daunting bill after another. Millions of Europeans need support. EU Member States have already invested billions of euros to assist vulnerable households. But we know this will not be enough. This is why we are proposing a cap on the revenues of companies that produce electricity at a low cost. We are putting These companies are making revenues they never accounted forward measures for, they never even dreamt of. for Member States In our social market economy, profits are good. to reduce their overall electricity But in these times it is wrong to receive extraordinary record profits benefitting from war and on the back of consumers. consumption. In these times, profits must be shared and channelled to those who need it the most. Our proposal will raise more than 140 billion euros for Member States to cushion the blow directly. And because we are in a fossil fuel crisis, the fossil fuel industry has a special duty, too. Major oil, gas and coal companies are also making huge profits. So they have to pay a fair share – they have to give a crisis contribution. These are all emergency and temporary measures we are working on, including our discussions on price caps. 11  STATE OF THE UNION 2022 ADDRESS We need to keep working to lower gas prices. We have to ensure our security of supply and, at the same time, ensure our global competitiveness. So we will develop with the Member States a set of measures that take into account the specific nature of our relationship with suppliers – ranging from unreliable suppliers such as Russia to reliable friends such as Norway. I have agreed with Prime Minister Store to set up a task force. Teams have started their work. We have to decouple the Another important topic is on the agenda. Today our gas market has changed dramatically: from pipeline mainly to increasing amounts dominant of LNG. influence of gas But the benchmark used in the gas market – the TTF – has not on the price of adapted. electricity. This is why the Commission will work on establishing a more representative benchmark. At the same time we also know that energy companies are facing severe problems with liquidity in electricity futures markets, risking the functioning of our energy system. We will work with market regulators to ease these problems by amending the rules on collateral - and by taking measures to limit intra-day price volatility. And we will amend the temporary state aid framework in October to allow for the provision of state guarantees, while preserving a level playing field. These are all first steps. But as we deal with this immediate crisis, we must also look forward. The current electricity market design – based on merit order – is not doing justice to consumers anymore. They should reap the benefits of low-cost renewables. So, we have to decouple the dominant influence of gas on the price of electricity. This is why we will do a deep and comprehensive reform of the electricity market. Now - here is an important point. Half a century ago, in the 1970s, the world faced another fossil fuel crisis. 12  STATE OF THE UNION 2022 ADDRESS Some of us remember the car-free weekends to save energy. Yet we kept driving on the same road. We did not get rid of our dependency on oil. And worse, fossil fuels were even massively subsidised. This was wrong, not just for the climate, but also for our public finances, and our independence. And we are still paying for this today. Only a few visionaries understood that the real problem was fossil fuels themselves, not just their price. Among them were our Danish friends. Hydrogen When the oil crisis hit, Denmark started to invest heavily into harnessing the power of the wind. can be a game changer They laid the foundations for its global leadership in the sector and created tens of thousands of new jobs. for Europe. This is the way to go! Not just a quick fix, but a change of paradigm, a leap into the future. STAYING THE COURSE AND PREPARING FOR THE FUTURE Honourable Members, The good news is: this necessary transformation has started. It is happening in the North Sea and the Baltic Sea, where our Member States agreed to invest massively into off-shore wind generation. It is happening in Sicily, where Europe’s largest solar factory will soon manufacture the newest generation of panels. And it is happening in Northern Germany, where local trains now run on green hydrogen. And hydrogen can be a game changer for Europe. 13  STATE OF THE UNION 2022 ADDRESS We need to move our hydrogen economy from niche to scale. With REPowerEU, we have doubled our 2030 target to produce ten million tons of renewable hydrogen in the EU, each year. To achieve this, we must create a market maker for hydrogen, in order to bridge the investment gap and connect future supply and demand. That is why I can today announce that we will create a new European Hydrogen Bank. It will help guarantee the purchase of hydrogen, notably by using resources from the Innovation Fund. It will be able to invest 3 billion euros to help building the future market for hydrogen. We will create a new This is how we power the economy of the future. European This is the European Green Deal. Hydrogen And we have all seen in the last months just how important the European Bank. Green Deal is. The summer of 2022 will be remembered as a turning point. We all saw the dry rivers, the burning forests, the impact of the extreme heat. And under the surface, the situation is far starker. So far the glaciers in the Alps helped as an emergency reserve for rivers like the Rhine or Rhone. But with Europe’s glaciers melting faster than ever, future droughts will be felt far more acutely. We must work relentlessly to adapt to our climate – making nature our first ally. This is why our Union will push for an ambitious global deal for nature at the UN Biodiversity conference in Montreal later this year. And we will do the same at COP27 in Sharm el-Sheikh. 14  STATE OF THE UNION 2022 ADDRESS But in the short term, we also need to be better equipped to handle our changing climate. The destructive power of extreme weather is too big for any country to fight on its own. This summer, we sent planes from Greece, Sweden and Italy to fight fires in France and Germany. But as disasters become more frequent and more intense, Europe will need more capacity. We will This is why I can today announce that we will double our double our firefighting capacity over the next year. firefighting The EU will buy another 10 light amphibious aircrafts and three capacity over helicopters to add to the fleet. the next year. This is European solidarity in action. Honourable Members, The last years have shown how much Europe can achieve when it is united. After an unprecedented pandemic, our economic output overtook pre-crisis levels in record time. We went from having no vaccine to securing over 4 billion doses for Europeans and for the world. And in record time, we came up with SURE – so that people could stay in their jobs even if their companies had run out of work. We were in the deepest recession since World War 2. We achieved the fastest recovery since the post-war boom. And that was possible because we all rallied behind a common recovery plan. NextGenerationEU has been a boost of confidence for our economy. 15  STATE OF THE UNION 2022 ADDRESS And its journey has only just begun. So far, 100 billion euros have been disbursed to Member States. This means: 700 billion euros still haven’t flown into our economy. NextGenerationEU will guarantee a constant stream of investment to sustain jobs and growth. It means relief for our economy. But most importantly, it means renewal. NextGenerationEU It is financing new wind turbines and solar parks, high- speed trains and energy-saving renovations. will guarantee a constant stream of We conceived NextGenerationEU almost two years ago, and yet it is exactly what Europe needs today. investment to sustain So let’s stick to the plan. jobs and growth. Let’s get the money on the ground. Honourable Members, The future of our children needs both that we invest in sustainability and that we invest sustainably. We must finance the transition to a digital and net-zero economy. And yet we also have to acknowledge a new reality of higher public debt. We need fiscal rules that allow for strategic investment, while safeguarding fiscal sustainability. Rules that are fit for the challenges of this decade. In October, we will come forward with new ideas for our economic governance. But let me share a few basic principles with you. Member States should have more flexibility on their debt reduction paths. 16  STATE OF THE UNION 2022 ADDRESS But there should be more accountability on the delivery of what we have agreed on. There should be simpler rules that all can follow. To open the space for strategic investment and to give financial markets the confidence they need. Let us chart once again a joint way forward. With more freedom to invest. And more scrutiny on progress. More ownership by Member States. And better results for citizens. Let us rediscover the Maastricht spirit – stability and growth can only go hand in hand. Honourable Members, As we embark on this transition in our economy, we must rely on the enduring values of our social market economy. It’s the simple idea that Europe’s greatest strength lies in each and every one of us. Our social market economy encourages everyone to excel, but it also takes care of our fragility as human beings. It rewards performance and guarantees protection. It opens opportunities but also set limits. We need this even more today. The strength of Because the strength of our social market economy will drive our social market the green and digital transition. economy will drive We need an enabling business environment, a workforce with the right skills and access to raw materials our the green and digital industry needs. transition. Our future competitiveness depends on it. 17  STATE OF THE UNION 2022 ADDRESS We must remove the obstacles that still hold our small companies back. They must be at the centre of this transformation – because they are the backbone of Europe’s long history of industrial prowess. And they have always put their employees first – even and especially in times of crisis. But inflation and uncertainty are weighing especially hard on them. This is why we will put forward an SME Relief Package. It will include a proposal for a single set of tax rules for doing business in Europe – we call it BEFIT. We must remove the This will make it easier to do business in our Union. Less red tape means better access to the dynamism of a continental market. obstacles And we will revise the Late Payment Directive – because it is that still hold simply not fair that 1 in 4 bankruptcies are due to invoices not being our small paid on time. companies For millions of family businesses, this will be a lifeline in troubled waters. back. But European companies are also grappling with a shortage of staff. Unemployment is at a record low, and this is great. At the same time, job vacancies are at a record high. Europe lacks truck drivers, waiters and airport workers, as well as nurses, engineers and IT technicians. Both low-end and high-end. We need everyone on board. We need much more focus in our investment on professional education and upskilling. 18  STATE OF THE UNION 2022 ADDRESS We need better cooperation with the companies, because they know I am proposing best what they need. to make 2023 And we need to match these needs with people’s aspirations. the European But we also have to attract the right skills to our continent, skills that Year of help companies and strengthen Europe’s growth. Skills. As a first important step, we need to speed up and facilitate the recognition of qualifications also of third country nationals. This will make Europe more attractive for skilled workers. This is why I am proposing to make 2023 the European Year of Skills. Honourable Members, My third point for our SMEs and our industry. Whether we talk about chips for virtual reality or cells for solar panels, the twin transitions will be fuelled by raw materials. Lithium and rare earths are already replacing gas and oil at the heart of our economy. By 2030, our demand for those rare earth metals will increase fivefold. And this is a good sign, because it shows that our European Green Deal is moving fast. The not so good news is – one country dominates the market. So we have to avoid falling into the same dependency as with oil and gas. This is where our trade policy comes into play. New partnerships will advance not only our vital interests – but also our values. Trade that embraces workers’ rights and the highest environmental standards is possible with like- minded partners. 19  STATE OF THE UNION 2022 ADDRESS We need to update our links to reliable countries and key growth regions. And for this reason, I intend to put forward for ratification the agreements with Chile, Mexico and New Zealand. And advance negotiations with key partners like Australia and India. But securing supplies is only a first step. The processing of these metals is just as critical. Today, China controls the global processing industry. Almost 90 % of rare earths and 60 % of lithium are processed in China. We will identify strategic projects all along the supply chain, from extraction to refining, from processing to recycling. And we will build up strategic reserves where supply is at risk. Let’s make sure that This is why today I am announcing a European Critical Raw Materials Act. the future We know this approach can work. of industry is made in Five years ago, Europe launched the Battery Alliance. And soon, two third of the batteries we need will be produced in Europe. Europe. Last year I announced the European Chips Act. And the first chips gigafactory will break ground in the coming months. We now need to replicate this success. This is also why we will increase our financial participation to Important Projects of Common European Interest. And for the future, I will push to create a new European Sovereignty Fund. Let’s make sure that the future of industry is made in Europe. 20  STATE OF THE UNION 2022 ADDRESS STANDING UP FOR OUR DEMOCRACY Honourable Members, As we look around at the state of the world today, it can often feel like there is a fading away of what once seemed so permanent. And in some way, the passing of Queen Elizabeth II last week reminded us of this. She is a legend! She was a constant throughout the turbulent and transforming Queen Elizabeth II events in the last 70 years. always reminded Stoic and steadfast in her service. us that our future But more than anything, she always found the right words for is built on new every moment in time. ideas and founded From the calls she made to war evacuees in 1940 to her historic in our oldest address during the pandemic. values. She spoke not only to the heart of her nation but to the soul of the world. And when I think of the situation we are in today, her words at the height of the pandemic still resonate with me. She said: “We will succeed – and that success will belong to every one of us”. She always reminded us that our future is built on new ideas and founded in our oldest values. Since the end of World War 2, we have pursued the promise of democracy and the rule of law. And the nations of the world have built together an international system promoting peace and security, justice and economic progress. 21  STATE OF THE UNION 2022 ADDRESS Today this is the very target of Russian missiles. What we saw in the streets of Bucha, in the scorched fields of grain, and now at the gates of Ukraine’s largest nuclear plant – is not only a violation of international rules. It’s a deliberate attempt to discard them. This watershed moment in global politics calls for a rethink of our foreign policy agenda. This is the time to invest in the power of democracies. This is the This work begins with the core group of our like-minded partners: our friends in every single democratic nation on this globe. time to invest in the We see the world with the same eyes. And we should mobilise our collective power to shape global goods. power of democracies. We should strive to expand this core of democracies. The most immediate way to do so is to deepen our ties and strengthen democracies on our continent. This starts with those countries that are already on the path to our Union. We must be at their side every step of the way. Because the path towards strong democracies and the path towards our Union are one and the same. So I want the people of the Western Balkans, of Ukraine, Moldova and Georgia to know: You are part of our family, your future is in our Union, and our Union is not complete without you! We have also seen that there is a need to reach out to the countries of Europe – beyond the accession process. This is why I support the call for a European Political Community – and we will set out our ideas to the European Council. 22  STATE OF THE UNION 2022 ADDRESS But our future also depends on our ability to engage beyond the core of our democratic partners. Countries near and far, share an interest in working with us on the great challenges of this century, such as climate change and digitalisation. This is the main idea behind Global Gateway, the investment plan I announced right here one year ago. It is already delivering on the ground. Together with our African partners we are building two factories in Rwanda and Senegal to manufacture mRNA vaccines. They will be made in Africa, for Africa, with world-class technology. And we are now replicating this approach across Latin America as part of a larger engagement strategy. Our future also depends on our This requires investment on a global scale. ability to engage So we will team up with our friends in the US and with other G7 beyond the partners to make this happen. core of our In this spirit, President Biden and I will convene a leaders’ meeting to review and announce implementation projects. democratic partners. Honourable Members, This is part of our work of strengthening our democracies. But we should not lose sight of the way foreign autocrats are targeting our own countries. Foreign entities are funding institutes that undermine our values. Their disinformation is spreading from the internet to the halls of our universities. Earlier this year, a university in Amsterdam shut down an allegedly independent research centre, which was actually funded by Chinese 23  STATE OF THE UNION 2022 ADDRESS entities. This centre was publishing so-called research on human rights, dismissing the evidence of forced labour camps for Uyghurs as “rumours”. These lies are toxic for our democracies. Think about this: We introduced legislation to screen foreign direct investment in our companies for security concerns. If we do that for our economy, shouldn’t we do the same for our values? We need to better shield ourselves from malign interference. This is why we will present a Defence of Democracy package. It will bring covert foreign influence and shady funding to light. We will not allow any autocracy’s Trojan horses to attack our democracies from within. For more than 70 years, our continent has marched towards democracy. But the gains of our long journey are not assured. Many of us have taken democracy for granted for too long. Especially those, like me, who have never experienced what it means to live under the fist of an authoritarian regime. Today we all see that we must fight for our democracies. Every single day. We must protect them both from the external threats they face, and from the vices that corrode them from within. It is my Commission’s duty and most noble role to protect the rule of law. We must fight for our So let me assure you: we will keep insisting on judicial democracies. Every independence. single day. And we will also protect our budget through the conditionality mechanism. 24  STATE OF THE UNION 2022 ADDRESS And today I would like to focus on corruption, with all its faces. The face of foreign agents trying to influence our political system. The face of shady companies or foundations abusing public money. If we want to be credible when we ask candidate countries to strengthen their democracies, we must also eradicate corruption at home. Corruption erodes That is why in the coming year the Commission will present measures to update our legislative framework trust in our for fighting corruption. institutions. So we We will raise standards on offences such as illicit enrichment, must fight back with trafficking in influence and abuse of power, beyond the more classic offences such as bribery. the full force of the law. And we will also propose to include corruption in our human rights sanction regime, our new tool to protect our values abroad. Corruption erodes trust in our institutions. So we must fight back with the full force of the law. Honourable Members, Our founders only meant to lay the first stone of this democracy. They always thought that future generations would complete their work. “Democracy has not gone out of fashion, but it must update itself in order to keep improving people’s lives.” These are the words of David Sassoli – a great European, who we all pay tribute to today. David Sassoli thought that Europe should always look for new horizons. And through the adversities of these times, we have started to see what our new horizon might be. A braver Union. Closer to its people in times of need. Bolder in responding to historic challenges and daily concerns of Europeans. And to walk at their side when they deal with the big trials of life. 25  STATE OF THE UNION 2022 ADDRESS This is why the Conference on the Future of Europe was so important. The Citizens’ It was a sneak peek of a different kind of citizens’ engagement, Panels that were well beyond election day. central to the And after Europe listened to its citizens’ voice, we now need to Conference will deliver. now become a The Citizens’ Panels that were central to the Conference will now become a regular feature of our democratic life. regular feature of our democratic life. And in the Letter of Intent that I have sent today to President Metsola and Prime Minister Fiala, I have outlined a number of proposals for the year ahead that stem from the Conference conclusions. They include for example a new initiative on mental health. We should take better care of each other. And for many who feel anxious and lost, appropriate, accessible and affordable support can make all the difference. Honourable Members, Democratic institutions must constantly gain and regain the citizens’ trust. We must live up to the new challenges that history always puts before us. Just like Europeans did when millions of Ukrainians came knocking on their door. This is Europe at its best. A Union of determination and solidarity. But this determination and drive for solidarity is still missing in our migration debate. Our actions towards Ukrainian refugees must not be an exception. They can be our blueprint for going forward. 26  STATE OF THE UNION 2022 ADDRESS We need fair and quick procedures, a system that is crisis proof and quick to deploy, and a permanent and legally binding mechanism that ensures solidarity. And at the same time, we need effective control of our external borders, in line with the respect of fundamental rights. I want a Europe that manages migration with dignity and respect. I want a Europe where all Member States take responsibility for challenges we all share. And I want a Europe that shows solidarity to all Member States. I want a We have progress on the Pact, we now have the Roadmap. And Europe we now need the political will to match. that shows solidarity to Honourable Members, all Member States. Three weeks ago, I had the incredible opportunity of joining 1,500 young people from all over Europe and the world, who gathered in Taizé. They have different views, they come from different countries, they have different backgrounds, they speak different languages. And yet, there is something that connects them. They share a set of values and ideals. They believe in these values. They are all passionate about something larger than themselves. This generation is a generation of dreamers but also of makers. In my last State of the Union address, I told you that I would like Europe to look more like these young people. We should put their aspirations at the heart of everything we do. 27  STATE OF THE UNION 2022 ADDRESS And the place for this is in our founding Treaties. Every action that our Union takes should be inspired by a simple principle. That we should do no harm to our children’s future. That we should leave the world a better place for the next generation. And therefore, Honourable Members, I believe that it is time to enshrine solidarity between generations in our Treaties. It is time to renew the European promise. And we also need to improve the way we do things and the As this Parliament way we decide things. has called for, Some might say this is not the right time. But if we are serious about preparing for the world of tomorrow we must be able to I believe the act on the things that matter the most to people. moment has arrived And as we are serious about a larger union, we also have to for a European be serious about reform. Convention. So as this Parliament has called for, I believe the moment has arrived for a European Convention. CONCLUSION Honourable Members, They say that light shines brightest in the dark. And that was certainly true for the women and the children fleeing Russia’s bombs. They fled a country at war, filled with sadness for what they had left behind, and fear for what may lie ahead. 28  STATE OF THE UNION 2022 ADDRESS But they were received with open arms. By many citizens like Magdalena and Agnieszka. Two selfless young women from Poland. As soon as they heard about trains full of refugees, they rushed to the Warsaw Central Station. They started to organise. They set up a tent to assist as many people as possible. They reached out to supermarket chains for food, and to local authorities to organise buses to hospitality centres. In a matter of days, they gathered 3000 volunteers, to welcome refugees 24/7. Honourable Members, Magdalena and Agnieszka are here with us today. Please join me in applauding them and each and every European who opened their hearts and their homes. Their story is about everything our Union stands and strives for. It is a story of heart, character and solidarity. They showed everyone what Europeans can achieve when we rally around a common mission. This is Europe’s spirit. A Union that stands strong together. A Union that prevails together. Long live Europe. 29  STATE OF THE UNION 2022 LETTER OF INTENT LETTER OF INTENT TO PRESIDENT ROBERTA METSOLA AND TO PRIME MINISTER PETR FIALA STATE OF THE UNION 30 2022  STATE OF THE UNION 2022 LETTER OF INTENT Brussels, 14 September 2022 Dear President Metsola, Dear Prime Minister Fiala, It is just over 200 days since Russia’s brutal and cruel war of aggression against Ukraine started. 200 days in which the people of Ukraine have suffered so much – yet shown so much courage and resolve. 200 days of united, unstinting and unwavering support from the people, nations and institutions that make up our European Union. What is at stake here is about Ukraine. But it is also about what the European Union stands for: freedom, democracy, human rights, the rule of law and all the values that constitute our foundations. So as we gather for this year’s State of the Union debate, we jointly reaffirm our commitment to supporting Ukraine in every way possible. And we double down on our support to all Europeans who are facing difficulties as people and companies look to make ends meet as the cost of living becomes more expensive, having so recently faced the impact of the pandemic and the lockdowns. This is why supporting Europeans through these testing times will be the Commission’s first priority in the year ahead. In this spirit, the Commission is putting forward a series of proposals to alleviate the impact of the energy crisis on those households and businesses most in need and help them to adapt. This is the latest in a number of measures to reinforce our resilience since the start of the war, in particular in ridding ourselves of our energy dependencies. Through REPowerEU, we accelerated the work for diversifying supply away from Russian fossil fuels, accelerating the roll-out of renewables, promoting energy savings and increasing our storage capacities. Since the onset of Russia’s aggression, the European Union has shown how swiftly and how strongly it can respond when it acts together. We adopted rapid and hard-hitting sanctions with many of our global partners, which are now biting hard for Russia’s economy and industry. As Team Europe we have provided more than 19 billion euros in financial assistance to Ukraine, without counting military support. We activated the Temporary Protection Directive granting Ukrainian refugees’ access to jobs, housing, education and healthcare across the EU. We took action to facilitate trade and established Solidarity Lanes to help Ukrainian exports and safeguard global food security. And, historically, we also granted candidate status to Ukraine and Moldova to open up their path to our Union. Europe has shown in the last year that is a geopolitical Union – and we must continue to show leadership, working with our partners across the world. This also includes strengthening our resilience and security by strengthening our cybersecurity and stepping up our work on defence. In the year ahead the best way to deal with these pressing challenges is also to stay the course on the plan we commonly set out for this mandate. The major digital and green transformations we embarked on together have only taken on additional importance as we have grappled with pandemics, lockdowns and now a war on our border. This is about building a better future for the next generation and making ourselves more resilient and more prepared for challenges to come. This starts with implementing what has already been agreed. This includes implementing the landmark agreements on the Digital Markets Act and the Digital Services Act which saw the EU take global leadership in regulating the digital space to make it safer and more open. We will continue looking at new digital opportunities and trends, such as the metaverse. It also means continuing the work on investment and reforms through NextGenerationEU, of which 700bn EUR remains to be invested in the years ahead. Similarly, we must continue to use the power of the EU budget to ensure it best supports people and the economy. Looking ahead, we must also assess how COVID, the war 31  STATE OF THE UNION 2022 LETTER OF INTENT and their spill-over effects is affecting our long-term budget. To this end, we will put forward a mid- term review of the long-term budget in the year ahead. It is essential we continue our work to find agreement on legislative proposals the Commission has already presented. We want to thank the European Parliament and Council for their cooperation and efforts to agree so many urgent proposals with such speed – whether on COVID-19 certificate, digital rules or the minimum wage. We must speed up this approach, notably on files key to the European Green Deal and to reaching our climate neutrality goals. We will also put forward a number of targeted new proposals that are essential to responding to short term challenges or our long-term objectives. Given the need for the co-legislators to prioritise the adoption of proposals in the year ahead, the list focuses on action where it is most needed. The list below highlights key initiatives for 2023. It is based on our discussions with the European Parliament and Council and will be complemented by the upcoming Commission Work Programme and continued interinstitutional dialogue. The 2023 Commission Work Programme will be also largely inspired by the outcome of the Conference on the Future of Europe. This reflects not only our shared commitment to better listening to the expectations of citizens but also the resounding success of the Conference, both as an exercise in participative democracy, and as a way to improve our policy making. The list below includes proposals stemming directly from the citizens’ recommendations, such as an initiative on mental health – one of the new areas which the Conference asked us to work on. We will include Citizens’ Panels in our policy making toolbox so that they can make recommendations before certain key policy proposals, starting with the upcoming work on food waste. Building on the success of the European Year of Youth, one third of participants will be young people. For Europe – now more than ever - solidarity is destiny. The more we stand together, the more unity we show, the more we can emerge from the year ahead as a stronger Union and the better we can prepare the world of tomorrow. This will be our collective mission in the year and you can count on the Commission to work with you every step of the way. Ursula von der Leyen Maroš Šefčovič 32  STATE OF THE UNION 2022 LETTER OF INTENT KEY NEW INITIATIVES FOR 2023 Initiatives that directly follow up or indirectly contribute to a proposal of the Conference of the Future of Europe are marked with an asterisk (*). A EUROPEAN GREEN DEAL Revision of EU’s internal electricity market rules Proposal to create EU Hydrogen Bank Revision of waste framework to reduce waste, including food waste, and the environmental impact of waste management * Legislative proposal on plants produced by certain new genomic techniques * Revision of animal welfare EU legislation * A EUROPE FIT FOR THE DIGITAL AGE European critical raw materials act * SME Relief Package, including Late Payment Directive Initiative on virtual worlds, such as metaverse Patent Licensing package Legislative proposal on the screening and registration of asbestos in buildings * Proposal for European Year of Skills AN ECONOMY THAT WORKS FOR PEOPLE Mid-term review of the Multiannual Financial Framework 2021-2027 * Economic Governance Review Legislative proposal on a second set of new own resources * Legislative proposal on Business in Europe: a framework for income taxation ‘BEFIT’ * Data Access in financial services * Legislative proposals on establishing the digital euro * 33  STATE OF THE UNION 2022 LETTER OF INTENT A STRONGER EUROPE IN THE WORLD EU space strategy for security and defence * New Agenda for Latin America and the Caribbean Update of the EU maritime security strategy Updating the human rights sanctions regime PROMOTING OUR EUROPEAN WAY OF LIFE A comprehensive approach to mental health * Recognition of qualifications of third country nationals Legislative proposal on the digitalisation of travel documents and the facilitation of travel Revision of the combating child sexual abuse Directive Initiative on Cybersecurity Skills Academy A NEW PUSH FOR EUROPEAN DEMOCRACY Defence of democracy package, including an initiative on the protection of the EU democratic sphere from covert foreign influence Anti-corruption package Legislative proposal on a European disability card * 34 ACHIEVEMENTS STATE OF THE UNION 2022  STATE OF THE UNION 2022 ACHIEVEMENTS A PIONEERING STORY OF DEMOCRATIC RESILIENCE In December 2019, the von der Leyen Commission severe sanctions on Vladimir Putin’s war machine. set a new and ambitious course towards a Supported by partners from across the world, the greener, more digital and fairer European sanctions are taking a heavy toll on Russia’s Union. Through two historic world events – the economy and are damaging the Kremlin’s coronavirus pandemic and Russia’s cruel war ability to wage the war. We have cut Russia’s against Ukraine – Europe has stood united both access to the international financial system by in its fight against the virus and beside Ukraine’s expelling it from SWIFT, we are freezing and people. While doing so, we have not only held but seizing the assets of Kremlin-linked oligarchs and also accelerated our bold course forward. we are crippling Russia’s military–industrial Together, we are shaping the future. complex by cutting its access to advanced technologies. Europe’s response to the two epoch-making crises of our times may have surprised the world. First came COVID-19. The pandemic has taken a heavy toll, but together we have saved countless lives and helped our economy recover in record The European Union’s answer time. Thanks to the European Commission’s vaccine strategy, 83.4 % of the adult to the great challenges population in the EU has received primary we face is guided by vaccination (one or two doses) against the disease. The EU is the world’s biggest provider of democratic values vaccines against COVID-19. And the EU Digital COVID Certificate has protected the fundamental and the Sustainable right to free movement, becoming a global Development Goals, standard. and based on an economy For the first time in its history, the Commission has raised massive resources from capital that works for people. markets to support economic recovery and reforms in the Member States. Our recovery plan, NextGenerationEU, has given new confidence in the future to families, businesses and investors in the EU. Our pandemic response has not only made us more resilient to COVID-19 and future health threats, but also strengthened the resilience of democracy and the economy in Europe. Then came Russia’s unprovoked and unjustified aggression against Ukraine. An entire continent has mobilised to support Ukrainians. With unprecedented speed and unity, the EU imposed 36  STATE OF THE UNION 2022 ACHIEVEMENTS In parallel, the Commission has put forward The Conference on the Future of Europe, REPowerEU, Europe’s ground-breaking plan which concluded on 9 May 2022, tapped into this to cut its dependency on Russian fossil deep reserve of creativity and energy, to empower fuels. We are diversifying our energy supplies, citizens to shape the future of our European increasing energy efficiency and accelerating the Union. The Commission has listened, and now it roll-out of renewable energy. The green transition is time to deliver. is not only good for the health of people and the There is an arc in Europe’s history that planet, but also strengthens Europe’s energy bends towards democracy and unity. From security. If Putin was seeking to divide Europe, he the defeat of fascism in 1945 to the end of the has achieved the exact opposite. The EU is more dictatorships in Greece and the Iberian Peninsula united than ever, and we are standing together in the 1970s, and from the fall of the Berlin Wall in this war. in 1989 and the reconciliation of East and West The European Union’s answer to the great to Ukraine’s fight for freedom and democracy challenges we face is guided by democratic against Russian aggression, there is a consistent values and the Sustainable Development Goals, long-term drive towards more democracy in and based on an economy that works for people. Europe. And in each instance of change, it is The EU has the strongest labour market in people – their voices, courage and demands decades because the Commission helped for justice – who bring about this change. Member States support workers and businesses This is the story of the European Union. It is what during the lockdowns. And with NextGenerationEU, makes us Europeans strong and confident about we are investing in European industry, the future. infrastructure and jobs. The European chips act proposal, for example, is building on Europe’s world-class semiconductor research base to drive cutting-edge production. The Global Gateway, Europe’s new global investment strategy, is helping to accelerate fair green and digital transitions around the world. The last two and a half years have confirmed that Europe’s strength is its unity, and this unity is based on our shared democratic values: our commitment to fundamental human rights; the protection of a free and independent press; upholding the rule of law; and equality between women and men, rural and urban, young and old. No matter how you choose to identify, in Europe you are free to be yourself. Democracies must be worked at and renewed every single day, and this requires that citizens be empowered to speak up. 37  STATE OF THE UNION 2022 ACHIEVEMENTS 1. EUROPEANS STAND WITH UKRAINE, FOR DEMOCRACY AND PEACE Since the beginning MOMENTOUS SOLIDARITY of Russia’s brutal WITH UKRAINE attack on Ukraine on 24 February Millions of Ukrainians have sought shelter in the 2022, more than European Union, torn from their families and 8.2 million country by Putin’s bombs. The scenes of war are entries by devastating. But the bravery of the Ukrainian Ukrainians resistance, and the images of EU citizens nationals were welcoming refugees, show another picture – they recorded in the EU, tell us a story of hope. Ukraine and the mainly women, children European Union have never been closer. Until and older persons. The Ukrainians can safely return home and rebuild overwhelming solidarity shown by their independent and democratic country in EU citizens towards Ukrainian refugees – in peace, we will welcome and support them. particular in the Member States bordering Ukraine Because they are part of our European family. (Hungary, Poland, Romania and Slovakia), but everywhere across the Union – has shown the The first priority of the European Union’s response very best of European values and openness. The is to protect Ukrainian civilians. Working with our majority of Ukrainian refugees – more than partners on the ground, the Commission is 5.24 million – have crossed the border into ensuring the delivery of humanitarian aid and Poland, and Polish citizens have opened their the openness of humanitarian corridors hearts, homes and cities to shelter them. guaranteeing free and safe evacuation. As of June 2022, the EU had provided over EUR 348 million in humanitarian aid to Ukraine, for example to provide food, water, shelter and healthcare to the most vulnerable people. A group of citizens in Warsaw launched the “Pulawska 20” shop to collect and deliver free food, cosmetics and clothing to Ukrainian refugees and those internally displaced. 38  STATE OF THE UNION 2022 ACHIEVEMENTS More than 4 million Ukrainians have registered for temporary protection in the EU. In a historical first for our European Union, on 2 March 2022 the European Commission proposed Kiril Slavov, a deaf young Bulgarian to activate the Temporary Protection Directive. who grew up in Stockholm, helps This means that Ukrainian refugees have deaf Ukrainians flee the war and immediate full protection in the EU: restart their lives in Sofia. He assists them by translating into international sign language, and helps them find work. The Commission acted with speed and solidarity adopted the FAST‑CARE proposal, which would to support EU Member States on the ground. With provide an additional EUR 3.5 billion in pre- CARE (cohesion’s action for refugees in Europe), financing payments to Member States and Member States can use EU cohesion funds to ensuring that at least 30 % of the related resources provide emergency support to refugees. should be granted to operations managed by local EUR 3.5 billion from the pandemic crisis instrument authorities and civil-society organisations REACT-EU was also made immediately available addressing migratory challenges. to Member States. In June 2022, the Commission 39  STATE OF THE UNION 2022 ACHIEVEMENTS Answering the call of Ukraine’s President Volodymyr Zelenskyy, the European Commission and Canada rallied world leaders, in partnership with the advocacy group Global Citizen, and launched the pledging campaign Stand Up for Ukraine on 26 March 2022. The campaign quickly raised EUR 9.1 billion for people Via the largest ever mobilisation of the EU fleeing the Russian invasion, including Civil Protection Mechanism, the 27 Member EUR 1 billion from the Commission and another States, along with North Macedonia, Norway and EUR 1 billion from the European Bank for Turkey, have provided over 66 000 tonnes of Reconstruction and Development. The momentous aid to Ukraine, including food, first aid kits and solidarity on the part of the EU and its citizens protective clothing, but also strategic equipment will continue for as long as Ukrainians need our such as mobile hospitals, energy supplies and support. This is because Ukrainians are not only fire engines, with a financial value of the EU’s standing up for their own freedom, they are also support under the Civil Protection Mechanism of standing up for our European and democratic over EUR 425 million. Medical stockpiles in the values. EU under rescEU have also been sent to Ukraine, including ventilators, infusion pumps, patient monitors, masks and gowns, ultrasound devices, SANCTIONS: A UNITED oxygen concentrators, and much more. Given the DEMOCRATIC FRONT VERSUS scale of this operation, the EU has established logistics hubs in neighbouring Poland, Romania AUTOCRACY and Slovakia to coordinate the deliveries. Two EU-funded humanitarian warehouses and In immediate response to Russia’s recognition of logistics operations have also been set up in the separatist territories of the so called ‘Donetsk Ukraine. and Luhansk People’s Republics’ on 21 February 2022, and its military attack on Ukraine on On 11 March 2022, the first Medevac operation 24 February, the EU imposed hard-hitting was launched. Since then, more than 1 000 sanctions against the Russian economy and patients from Ukraine in need of continued those entities and individuals complicit in the war. treatment or urgent medical assistance have With swiftness and force, the European Union, been transferred to hospitals in the EU with the and its partners and businesses around the world help of the EU Civil Protection Mechanism. A new have acted to isolate Russia economically and medical evacuation plane has been added to bring Putin’s war machine to a halt. We stand on the EU’s rescEU fleet to help transport Ukrainian the side of Ukraine and of democracy over patients in need of urgent healthcare. autocracy; on the side of the rule of law over the At the same time, the Commission stepped up right of might; on the side of a fair and peaceful its efforts to reach out to both the Ukrainian- and international order over aggression and chaos. Russian-speaking communities, with a particular Russia’s actions are a breach of universal values focus on informing refugees about EU support. and international law, which the international The Commission quickly launched a dedicated community cannot allow. On 2 March 2022, the website about solidarity with Ukraine, United Nations voted overwhelmingly to available for the first time ever in both Ukrainian condemn Russia’s invasion of Ukraine: 141 of the and Russian. To directly reach people in Ukraine 193 member states voted for the resolution, with and Russian-speaking audiences, the Commission 35 abstentions and just 5 countries siding with also joined Telegram. The Europe Direct contact Russia. centre has replied to around 10 000 questions in relation to the Ukraine crisis and the plight of refugees and internally displaced people. 40  STATE OF THE UNION 2022 ACHIEVEMENTS Since the start of the war, the EU has adopted actions in undermining Ukraine’s territorial six unprecedented packages of sanctions integrity, sovereignty and independence. To with the aim of crippling the Kremlin’s ability to enforce these sanctions, the Commission swiftly finance the war and putting pressure on the brought together EU Member States, Europol and Russian regime. These sanctions cover the Eurojust, and set up a Freeze and Seize Task financial, energy and transport sectors, along Force. The task force exchanges information and with exports of dual-use goods, visa policy, experience across Member States and provides disinformation outlets spreading the Kremlin’s guidance on enforcing the sanctions. It works war propaganda, and Russian and Belarusian closely with the international Russian Elites, individuals and entities linked to Putin’s war. In Proxies and Oligarchs Task Force, under which accordance with international humanitarian law, the EU operates together with the G7 countries the EU includes humanitarian exceptions in its (Canada, France, Germany, Italy, Japan, the sanction regimes. United Kingdom and the United States) and Australia. The Commission has also proposed to make the violation of EU restrictive measures an We stand on the side of EU crime and to strengthen the rules on asset recovery and confiscation. Ukraine and democracy Existing export controls on dual-use goods have over autocracy. also been sharpened significantly to target sensitive sectors in Russia’s military–industrial The EU’s sanctions are so effective because they complex, thereby limiting Russia’s access to are implemented in concert with like-minded advanced technologies crucial to its security partners across the world. More than 40 and defence, such as drones and their software, countries, representing almost half of global software for encryption devices, and gross domestic product, are applying sanctions semiconductors and advanced electronics. The against Russia, including Canada, Japan, sanctions are downgrading Russia’s technological Liechtenstein, Norway, Singapore, South Korea, capabilities and the ability of its economy to Switzerland, the United Kingdom and the United modernise. States, along with neighbouring and candidate In accordance with the World Trade Organization countries, particularly in the Western Balkans. framework, the sanctions have imposed export The sanctions are cutting off Russia’s access to bans on products destined for Russia, such President of the European Commission Ursula von der Leyen attends the G7 Summit in Schloss Elmau, Germany. money on global capital markets, and are as steel, jet fuel, semiconductors, chemicals and gradually eroding Russia’s industrial base, in other essential products for Russia’s industrial particular its military–industrial complex. They base. At the same time, we have introduced have cut key Russian banks out of the SWIFT import bans to cut revenue streams for Russia system – the world’s dominant financial and its oligarchs, on products ranging from wood messaging system – including Sberbank, Russia’s to cement and from seafood (caviar) to liquor largest bank, essentially isolating Russia from (vodka), which cover more than half of what we global financial markets. The EU has also blocked imported from Russia before the war. Russia’s EU-held foreign exchange reserves. Within the first 3 months of the war alone, EU Member States froze assets worth EUR 12.5 billion, such as financial transactions, real estate, works of art, cars and yachts. This is in addition to blocking the reserves of the Central Bank of Russia in Europe. In total, 1 212 individuals and 108 entities have been subject to asset freezes and travel bans because of their 41  STATE OF THE UNION 2022 ACHIEVEMENTS For the sanctions to be effective, it was necessary Prohibiting the export to Russia of goods and for the EU to close down transportation technologies in the oil-refining sector. As routes to and from Russia. Two key areas in this such, the EU is making it impossible for regard were the closure of EU airspace to all Russia to upgrade its oil refineries. Russian-owned, -registered or -controlled aircraft, Prohibiting EU companies from offering and the export ban on goods, services and insurance and other financial services to any technology for aviation and the space ship transporting Russian oil products. This industry. Three quarters of Russia’s current will cripple Russia’s ability to export oil commercial air fleet was built in the EU, Canada products worldwide. or the United States. Sanctions also include a full ban on Russian and Belarusian freight road Stopping new investment in the Russian operators working in the EU and an entry ban on energy sector. Russia’s entire merchant fleet. However, certain exemptions apply that cover essential goods, Banning all forms of Russian coal such as agriculture and humanitarian aid. imports. This affects one quarter of all Russian coal exports, amounting to a revenue Belarus is supporting the invasion of Ukraine by loss of around EUR 8 billion per year for allowing the Russian military to operate from Russia. within its territory. This is why the EU has also stepped up its sanctions against Belarus. In addition, the Commission is setting the Since October 2020, the EU has progressively direction and providing momentum for the EU to imposed restrictive measures against Belarus in entirely remove its dependence on Russian fossil response to the Belarusian authorities’ fuels, including Russian gas, and to accelerate unacceptable violence against peaceful protestors Europe’s green transition. and the instrumentalisation of migrants at the EU’s border in 2021. The economic sanctions on Belarus, which now cover almost 70 % of all ENERGY SECURITY AND THE Belarusian exports to the EU, also exclude three GREEN TRANSITION Belarusian banks from the SWIFT system. At the same time, the EU has continued to support the On 18 May 2022, the European Commission people of Belarus, with close to EUR 65 million presented REPowerEU, the EU’s ground- in aid provided since summer 2020. This includes breaking plan to phase out its dependency emergency support for civil society and the on Russian fossil fuels through the accelerated victims of state oppression. roll-out of renewable energy, energy savings and Revenues from energy exports constitute a significant proportion of the Russian war chest. To stem the cash flows to Russia, the EU sanctioned the Russian energy sector in the following ways. An import ban on Russian seaborne crude oil and petroleum products. The ban covers 90 % of Europe’s current oil imports from Russia. 42  STATE OF THE UNION 2022 ACHIEVEMENTS the diversification of energy supplies. REPowerEU A massive scale-up and speed-up of is a comprehensive and detailed plan to achieve renewable energy is under way in power affordable energy for people living in the EU, generation, industry, buildings and transport. The energy security for Europe and sustainability for Commission has proposed to increase the the planet. REPowerEU is fully supported by the headline 2030 target for renewables from 40 % Versailles Declaration, signed by all Member to 45 % under the European Green Deal. State leaders on 11 March. Some 85 % of EU REPowerEU is paving the way for new and citizens believe that the European Union should ambitious initiatives: reduce its dependency on Russian fossil fuels as soon as possible. REPowerEU is the EU’s answer. 43  STATE OF THE UNION 2022 ACHIEVEMENTS REPowerEU is supporting the development of one INCREASE FROM 9 % to 13 % in the of the largest offshore wind farms in the 2030 binding energy efficiency target world in the North Sea. It will soon cover the under the EUROPEAN GREEN DEAL annual energy consumption of more than 50 FROM million homes, or roughly one quarter of all EU 9% households. The Commission’s legislative proposal for accelerating the permitting for renewable energy projects and their grid TO infrastructure will pave the way for a much faster 13 % deployment of renewable energy across the EU. Every kilowatt-hour of electricity we generate from wind, solar, hydropower or biomass reduces our dependency on fossil fuels from Russia and brings the EU one step closer to its net-zero future. appliances and products. To ensure that the EU is ready and resilient for the next winter, the Commission has introduced minimum gas The Commission is helping storage obligations on Member States, which need to ensure an 80 % filling level by 1 November Member States stem 2022. electricity prices and To answer to the weaponisation of gas by Russia, protect consumers. the Commission also proposed a new legislative tool and the ‘Save gas for a safe winter’ plan. This tool, which was adopted by the Council on 5 August 2022, would help the EU withstand a Renewables are the best answer to rising complete disruption of Russian gas supply by energy prices. The old carbon-heavy energies decreasing its gas consumption by 15 % until – coal, oil and gas – are getting more and more next spring. The plan also provides guidance for expensive, whereas renewable-energy costs have a coordinated gas reduction, in order to limit the been falling steadily for many years. Global impact for citizens and the economy. energy prices have been rising since summer 2021 and have been significantly exacerbated The EU is engaging with international partners to by Russia’s war of aggression against Ukraine. In diversify energy supplies, and has secured record the immediate term, the Commission is also levels of liquefied natural gas imports and higher helping Member States stem electricity prices pipeline gas deliveries. The Commission is working and protect consumers. As part of the Fit for 55 with Norway, the United Kingdom and United climate and energy package, the Commission has States, and also with Angola, Azerbaijan, Egypt, also put forward a proposal for a Social Climate Israel, Nigeria and South Korea. The agreement Fund aimed at supporting vulnerable households, President von der Leyen reached with US small and medium-sized enterprises and President Joe Biden will be replacing around transport users. one third of the 155 billion cubic meters of Russian gas the EU imported last year. The new The Commission has also proposed steps to liquefied natural gas infrastructure that the EU enhance long-term energy efficiency, including is building, to ensure security of supply and an increase in the 2030 binding energy efficiency solidarity for all Member States, will form the target under the European Green Deal from 9 % core of the green hydrogen corridors of the to 13 %. Member States are encouraged to use future. fiscal measures to encourage energy savings, such as reduced VAT rates on energy-efficient heating systems, building insulation, and 44  STATE OF THE UNION 2022 ACHIEVEMENTS The newly created EU Energy Platform, supported by regional task forces, will enable voluntary common purchases of gas, liquefied natural gas and hydrogen by pooling demand, optimising infrastructure use and coordinating and President of the European Commission to enhance Europe’s security through the NATO Secretary General Jens Stoltenberg outreach to suppliers. Replicating the success of Versailles Declaration: stepping up investment, the common vaccine purchasing programme, the harnessing innovative and critical technologies Commission is developing a joint purchasing and building a more integrated and competitive mechanism to contract gas purchases on behalf European defence market. On 21 March 2022, Ursula von der Leyen. of participating Member States. The EU will the European Council formally approved the continue to engage with likeminded partners strategic compass, which gives the EU an around the world through our bilateral trade ambitious plan of action towards 2030. This is agenda, to help secure the crucial supplies of all the more important at a time when war has energy and raw materials which will underpin our returned to Europe. energy and economic security going forward. In response to the Versailles Summit, in May REPowerEU comes with nearly EUR 300 2022 the Commission and the High Representative billion in financial support, including of the Union for Foreign Affairs and Security EUR 225 billion in loans available to Member Policy, Josep Borrell, presented an analysis of States from NextGenerationEU, Europe’s historic defence investment gaps. In the immediate recovery fund. The Commission has also proposed term, a Defence Joint Procurement Task Force that Member States add a REPowerEU chapter has been established to work with Member to their recovery and resilience plans, so they can States. Based on the work of the task force, a better target the pandemic recovery funds to the short-term EU instrument to reinforce defence objective of cutting the EU’s dependence on industrial capabilities through joint procurement Russian fossil fuels once and for all. REPowerEU has been proposed for fast-track adoption, to is a comprehensive and detailed plan to achieve support Member States in filling the most urgent affordable energy for people living in the EU, and critical gaps in a collaborative way. Also in energy security for Europe and sustainability for May 2022, the EU defence innovation scheme the planet. was announced aiming to see a total investment of EUR 2 billion into defence innovation. EUROPEAN DEFENCE AND The European Union is doing everything in its NATO power to protect the people of Ukraine in their resistance against the Russian aggressor and to help them realise their dream of a democratic, The European Union is becoming a stronger independent and peaceful Ukraine. That is why, security provider to protect EU citizens and for the first time in its history, the EU is contribute to international peace and security in providing military equipment and security our neighbourhood and beyond. On 11 March infrastructure to a non-EU country under attack. 2022, EU leaders gave a clear direction on how Nadia Dobrianska moved from Kyiv to Cork after an Irish family offered to host her and her family. Nadia is documenting human rights violations and war crimes by the Russian military. She also plays the Irish flute and sings Irish traditional songs. 45  STATE OF THE UNION 2022 ACHIEVEMENTS Upon the initiative of the High Representative, on 28 March 2022 the Council of the European Union adopted assistance measures under the European Peace Facility to provide equipment and supplies to the Ukrainian armed forces. The President of the European Commission Ursula von der Leyen and EU total amount of support provided to the Ukrainian Borrell pay tribute to the victims of Russia’s aggression on Ukraine.