In her 2026 State of the Union address, European Commission President Ursula von der Leyen described ‘a complex age of great possibilities and great perils’. From geopolitical tensions and energy prices to supply chain disruption, businesses operating in Europe face this reality every day. It is an environment that underscores the need for a strong Europe. A stronger, more united Europe is a more attractive place for American companies to invest.
A strong Europe benefits partners around the world
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Economic competitiveness
The economy was rightly the number one priority in the President’s speech. The direction of travel is well established: simplifying the EU’s rulebook and strengthening the Single Market. The challenge is no longer identifying what needs to change, but delivering change at the pace and scale required. Businesses have heard the diagnosis before. They now need to feel the impact on the ground.
The 12 Omnibus packages proposed since the start of the mandate are signs of progress. Yet, too much complexity remains and progress is still too slow. As the President noted, ‘speed is of the essence.’
That sense of urgency must apply at every level. The President was right to call on Member States to play their part. Uneven implementation and practices like Member State gold-plating fragment the number one driver of investment into Europe: the Single Market. At the same time, long before implementation, the EU must take a ‘simplification by design’ approach to new legislative initiatives, avoiding unnecessary duplication and fragmentation. Too often, we are still seeing new legislation fall back on old habits.
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Partnerships
Europe prospers when it remains open to the world. The President noted the power of the EU’s trade deals with partners around the world. Alongside strengthening the Single Market, opening up new paths to diversify its sources of growth and investment is how Europe keeps its supply chains resilient and its economy strong in a time of geopolitical volatility.
One partnership that remains essential to Europe’s success is the Europe-US commercial relationship. As a key source of jobs, innovation and investment on both sides of the Atlantic, the €8.5 trillion transatlantic economy is central to Europe’s prosperity and competitiveness.
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Climate
The President’s speech also recognised that competitiveness and the climate transition must reinforce one another. We do not agree with those who see a zero-sum choice between maintaining climate ambition and reducing regulatory burdens. Businesses must develop, deploy and scale the low-carbon technologies needed to make the transition possible. To unlock that investment, they need the right conditions to invest with confidence.
This is the question for the EU more broadly. Delivering on the long list of priorities set out in the State of the Union address will depend on one test: can the EU create the right conditions for investment? A strong economy, built on openness and partnerships, will be the foundation on which the EU forges its own path in this complex age.
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