On 16 September 2026, the European Commission (EC) President Ursula Von der Leyen delivered the annual State of the Union address (SOTEU). The speech was originally established in 2010 to make the Union’s priorities transparent and enhance accountability, and since then it has become one of the most important events in EU politics. In recent years, the EU Liaison Team has been keeping track and analysing the SOTEU and its significance for the community, see a past analysis on the speech and its relevance here.
This year’s speech spanned a broad range of topics ranging from migration to energy, from defence to climate change. In line with the 2026 Work Package, the EC has set forth several intentions to take action in highly sensitive sectors for the Union; chief among others, the One Europe One Market Roadmap, an action plan dedicated to removing internal trade barriers and boosting the Union’s economic competitiveness by the end of 2027. To deliver on this vision, and follow the path of the 2024-2029 Strategic Agenda, Von der Leyen announced various policies in key sectors for our community, which will be analysed below.
AI and Digital
A particularly salient topic is AI governance, on which the EC has set out to work with “like-minded partners”, such as Canada and the UK, on Frontier AI model evaluations, verifications and early warnings. Von der Leyen stressed the fundamental importance of ensuring the EU remains capable of reaping the benefits of AI, which she envisions being leveraged in the health, transport, agri-food, advanced manufacturing, and defence and space sectors. However, this approach represents a shift from the initially announced intention of being at the global forefront of AI development, as she now foresees Europe to take on a more supportive role. At the same time, she also highlighted the need to ensure a degree of human agency in these activities, and the intention of regulating the effects of this technology on employment conditions through a soon-to-be proposed Quality Jobs Act. While it is positive that the EC is taking a balanced stance, it is difficult to predict how many of these initiatives it will be able to actually roll out. Yet, one that is already being concretized is the newly proposed EU KIDS Act, aimed at restricting minors’ exposure to social media and their AI-fuelled algorithms.
International partnerships
Closely linked to AI and its implications for (digital) sovereignty, the role of international partners is likely to have an impact on our community. On these matters, Von der Leyen reaffirmed the need to act on the ongoing second China Shock and the €1-billion-a-day trade deficit; the timing of this declaration is particularly interesting, as it reflects the delicate political climate in Germany and its economic U-turn.
If the EU’s economic ties with China are not sustainable, the ones with Canada will deepen all the way to an “associate member” status. Canadian Prime Minister Carney was present at the moment Von der Leyen gave the speech, signalling a strong political willingness to cooperate with the Union. At the same time, it is unclear what this type of membership could entail, as it does not exist under EU law and would thus be the first one of its kind. Moreover, decisions on these matters fall under the competence of the Member States, making any kind of prediction difficult to be made. In the meantime, Von der Leyen announced the evolution of the economic relationship with Canada from the current free trade agreement CETA to an Alliance for the Future, which will include: cooperation on intelligent manufacturing, energy, critical minerals and batteries; AI, quantum, cyber and economic security; the creation of a tech alliance; integration of defence industrial bases; and an Arctic Flagship Joint Project.
What was missing
While the content of the SOTEU is being heavily discussed by politics and media, what has gained even more attention is what was not included in the speech. Science, research and education are only some of the topics close to the work of the community that Von der Leyen did not address; striking silence was also kept for what concerns the ongoing MFF negotiations or even knowledge mobility.
The only reference to EU Research and Innovation funding was when presenting the work of a satellite imaging company called Iceye, a particularly positive example of European entrepreneurship, whose founders met during Erasmus, and which received Horizon funding early on in its development. This omission is not specific to the Research and Education sphere, as the general sentiment regarding the 2026 SOTEU has been one of cautiousness, with the speech being compared to an accurate diagnosis of the EU’s challenges but lacking concrete strategic plans.
More answers can be found in the 2026 SOTEU accompanying report, which acknowledged the tremendous impact of Horizon funding and estimated that for €1 spent, the European economy will gain €11 by 2045; in that same instrument, the EC pledges that research innovation will be at the heart of the next EU budget and plans to allocate € 409 billion to Horizon Europe and the European Competitiveness Fund. The EU Liaison Team will keep monitoring for news regarding the relationship between the two instruments, which will be further developed in the months to come.
Equally, the EU Liaison Team will continue following developments regarding the MFF negotiations and the upcoming 2027 EC Work Program.
This article was written in WP3T3 of the GN5-2 project.
