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Thank you, Madam President, dear Roberta,
Honourable Members,
I want to begin with a topic that was central both to our discussions at the European Council and to last weeks COP30 in Brazil – decarbonisation and competitiveness. From Brussels to Belém, the message was the same. We must accelerate the clean transition, but also use it to drive growth and prosperity. This was at the heart of our discussions in the European Council – the work to decarbonise goes hand in hand with the work for our competitiveness. The goal is very clear, we keep a close eye on it – and on the way towards it we have to be fast and flexible, pragmatic and adaptable.
This year marks a full decade since the Paris Agreement. There are, of course, still many reasons to be deeply concerned – nature reminds us daily of the cost of inaction, the extreme weather events. But there is also progress to recognise. Two numbers: Ten years ago, we were heading towards a 4-degree Celsius temperature rise by the end of the century. Today, we are closer to 2.3 degrees Celsius. Still too high – but for the first time in modern history, the curve is bending. And it proves our ability to change things for the better if we are active. Take carbon pricing, for example. Since we introduced our Emissions Trading System, emissions in covered sectors have fallen by 50%, while our GDP has grown by 27%. And over EUR 250 billion have been reinvested in innovation and clean industries. The principle is clear. If you pollute, you pay. If you do not want to pay – innovate. And the result is also clear – decarbonisation and innovation go hand in hand.
The same is true for renewables. The vast bulk of emission reduction over the last decade has come from cleaning up our global energy sources. This year, 95% of new capacity worldwide was renewable. Solar and wind have replaced coal as the leading sources of electricity worldwide. The reason is simple – renewables are now not only cleaner, they are cheaper as well. And they have a compelling business case. In 2015, the year of the Paris Agreement, a total of USD 2 trillion were invested globally in energy. USD 1 trillion in fossil fuels. USD 1 trillion in renewables. Today, it has risen to USD 3 trillion a year. Still USD 1 trillion in fossil fuels, but now USD 2 trillion in renewables. This is a profound shift. And it can represent a vast opportunity for Europe. How we seize it was a central theme of our discussions at the European Council.
Honourable Members,
Too high energy prices are the main break to competitiveness in Europe. So energy was a centre point – but it was not the only point of discussion on competitiveness. As the Draghi report outlined, competitiveness depends on investment and scale here in Europe. That is why the European Council also discussed how to address other hurdles we have in our competitiveness. The need for innovation – that is why we are launching Choose Europe and the Scaleup Fund. The lack of deep and liquid capital markets – that is why we are advancing the Savings and Investments Union. The gap in the adoption of artificial intelligence – that is why we will deliver our AI First Strategy. It is the reason we are building the Gigafactories. The fragmentation in our Single Market — that is why we propose a 28th legal regime for innovative companies. All this is vital and urgent. That is why I very much welcome the initiative by the President of the European Council to have an informal European Council on competitiveness in February. We have so much potential, but we really have to unleash it. This however requires a shared sense of urgency and all hands on deck.
Honourable Members,
Our support for Ukraine was also at the heart of the European Councils discussions. And in the last two weeks, it has become even more urgent. Russia has again intensified its attacks – targeting all Ukraines energy sources at once. In just one day last week, Russia launched more than 40 ballistic and cruise missiles, and almost 500 drones targeting Ukraines energy infrastructure. Two major power plants were destroyed. Having failed to make progress on the battlefield, President Putin is again trying to terrorise the Ukrainian people. To use winter as a weapon. To freeze Ukraine into submission. Once again, he must fail. And Europe will continue to empower Ukraines resistance. We will repair the damage done by the Russian strikes. We will stabilise Ukraines energy grid – with over 2 gigawatts of electricity exports from our Union to Ukraine. And we will protect critical infrastructure – for example, with new anti-drone equipment. This winter will shape the future of the war, and our response must rise to the challenge.
Honourable Members,
We all want this war to end. But a lasting peace relies on a strong and independent Ukraine. Today, Putin still believes he can outlast us. He still thinks that, over time, Russia can achieve its aims on the battlefield. That is a clear miscalculation. Now is the moment to come with a new impetus, to unmask Putins cynical attempts to buy time and bring him to the negotiating table. We must continue to raise the cost of the war for Russia. Also because the scars are becoming more and more visible in Russias economy right now. This is why we will disburse today almost EUR 6 billion from the ERA loan and the Ukraine Facility. And that is why I very much welcome the European Councils commitment to cover Ukraines financial needs for the next two years. We are working closely with Belgium, and all Member States, on options to deliver on this commitment. Option 1 is to use the budgets headroom to raise money on capital markets. Option 2 is to have an intergovernmental agreement, that Member States raise the necessary capital by themselves. Option 3 is to have a Reparations Loan based on immobilised Russian assets. This would be based on the cash balance of the immobilised assets. We give a loan to Ukraine – that Ukraine pays back if Russia pays reparations. This is the most effective way to sustain Ukraines defence and its economy. And the clearest way to make Russia understand that time is not on its side. We will show that, if needed, we are in this for the long haul. Because this is about our freedom That Europe will stand with Ukraine for as long as it takes.
Thank you. And long live Europe.
