Analysis
#SOTEU2021: EU’s push for green, digital recovery from Covid-19
In her second State of the Union address on September 15, European Commission President Ursula von der Leyen reflected on the European Union’s ongoing efforts against the Covid-19 pandemic and defined a recovery route for the next years.
Von der Leyen took stock of the results achieved through cooperation between Member States (including more than 70% of European adults being fully vaccinated) and global solidarity.
In her speech, the president of the European Commission touched upon some of the institution’s most prominent goals, including:
- preparedness against the pandemic, swift and inclusive recovery;
- upscaling digital transformation by reducing dependencies on third countries;
- the reduction of carbon emissions and further endeavours to maintaining common EU values and building future partnerships;
President von der Leyen outlined the main measures the Commission plans to undertake in the coming year. These included:
- maintaining vaccination efforts in Europe and speeding up the global immunisation campaign, as well as bolstering pandemic readiness;
- mooperating with worldwide partners to close the climate finance gap;
- taking the lead in the digital transformation that will create employment and boost competitiveness, while assuring excellence and supply security;
- creating more possibilities for Europe’s youth to benefit from the European social market economy by ensuring fairer working conditions and better healthcare.
NextGenEU
President von der Leyen declared that faced with the current global economic crisis, the EU has decided to act together to renew growth with the NextGenEU programme.
The EU has experienced a speedy recovery from the Covid-19 pandemic. A total of 19 Member States are expected to achieve pre-pandemic GDP levels this year. Growth in the euro area outpaced both China and the US in the last quarter.
NextGenEU will be a driver for investment in both short-term recovery and long-term prosperity.
According to the president, it is crucial that NextGenEU is financed through the EU’s own resources, and the Commission is working to make this possible. She underlined how, since its creation, the Single Market has been the enabler of progress and prosperity throughout Europe.
Focus on young people
The president emphasised how everything the EU is currently doing, from both the climate and economic points of view, is to protect the future of younger generations. From her perspective, young people are the driver of the green transition, as they will shape Europe’s future.
Von der Leyen announced the establishment of the ALMA programme, which will help young Europeans gain work experience in other Member States. In line with the Erasmus programme, ALMA will help the young to learn skills, create bonds and help forge their European Identity. She also declared 2022 the Year of European Youth.
Biodiversity & beyond
The president announced that the EU will double its external funding for biodiversity, with the aim of assisting the most vulnerable countries in facing the biodiversity crisis.
On the topic of COP26, the Commission president called on the US and the EU to provide strong signals of global climate leadership.
Von der Leyen labelled the COP26 in Glasgow as “the moment of truth for the global community”. She called on other major economies to back up national climate neutrality pledges with concrete and ambitious actions.
In previous COPs, the parties agreed on providing $100 billion a year until 2025. The EU has committed to its share, contributing $25 billion per year. Von der Leyen believes that closing this financial gap will increase the chances of success for COP26. In Glasgow, the EU will propose an additional €4 billion for climate finance up to 2027.
Upcoming investments & digital tax
President von der Leyen said the EU will invest in an “unprecedented manner” in 5G and fibre. Equally important, she affirmed, will be investment in digital skills.
The single market – particularly the digital single market – is the “driver of good jobs”, she asserted. The digital transformation will drive competitiveness and help delivering the European Green Deal.
The Commission will continue to ensure fighting tax evasion remains among its priorities. For this reason, the EU will focus efforts on securing a global deal on minimum taxation.
Healthcare & vaccinations
The president highlighted the incredible progress made over the past year in developing a safe and effective vaccine against Covid-19 and reaching the goal of fully vaccinating over 70% of adults in the EU. Solidarity had also been at the forefront, with the EU being the only region to deliver 700 million doses to over 130 countries.
Nevertheless, von der Leyen was clear that we cannot be complacent and outlined the three most urgent priorities for the coming year as the EU aims to recover from the pandemic:
- Speed up global vaccination. EU will be investing €1 billion to ramp up mRNA production capacity in Africa and will be adding a new donation of another 200 million doses to low- and middle-income countries by the middle of next year.
- Continue efforts in Europe to tackle divergences in vaccination rates across Member States. EU has secured 1.8 billion additional doses for the Union and its neighbourhood.
- Strengthen pandemic preparedness. HERA will be an important asset for addressing future health threats and will bring together the EU’s innovation and scientific capacity, private sector knowledge and competent national authorities. The president proposes a new health preparedness and resilience mission for the EU, supported by an investment of €50 billion by 2027.
Beyond EU borders, cybersecurity & connectivity
Given rising tensions at the EU’s borders, von der Leyen called for more cooperation at the EU level to ensure stability in and outside the EU. She announced an EU-NATO Joint Declaration before the end of year for more cooperation on security and defence issues and a stronger partnership.
Von der Leyen also proposed an European Defence Union for which more political will needs to be fostered. This Defence Union will seek to build the foundations for collective decision-making based on shared intelligence at the EU level, which is currently lacking.
The president highlighted cybersecurity as a crucial aspect of the European Defence Union. The EU should not be satisfied with solely addressing cyberthreats: it should also be a leader in cybersecurity.
For this reason, the Commission will develop a European Cyber Defence Policy, including legislation on common standards under a new European Cyber Resilience Act to improve cybersecurity standards.
Von der Leyen also called on Member States to focus efforts on improving cybersecurity. The president stated that it is time for the EU to redefine its connectivity model in relation to the rest of the world and called for more strategic investments in connectivity in and outside the EU.
To achieve this, the Commission will present a new strategy, Global Gateway, “to create links and not dependencies”, through a values-based approach based on transparency and good-governance.
Compiled by Kathrin Ludwig with input from Giacomo Pizza (Digital), Sophie Marandon (Transport, Travel & Logistics), Gabriele Collatina (Green Transition), Lydia Shotton & Inês Terêncio Marques (Healthcare).
