Von der Leyen says EU budget must be backed by new own resources
The President of the European Commission, Ursula von der Leyen, has stressed that the budget is about Europe’s future, adding that any modern budget needs new sources of revenue at the EU level.
Von der Leyen gave her annual "State of the Union" speech before the Parliament in Strasbourg on 16/09/2026. She said: "Our budget is about our future. And any modern budget needs new own resources. We must create the conditions for our companies to attract investment and grow."
She said this underlined the importance of the Savings and Investments Union, but acknowledged that building capital markets is a long-term process. "The needs of our companies are urgent. We need a banking system that is built for growth, not just stability," she added.
Therefore, the Commission plans a new Banking Package focusing on simplification and tackling fragmentation. "We know the demand for capital is out there. But we need a greater capacity and appetite for risk," von der Leyen said.
At this stage, own resources appear to be one of the key sticking points in the negotiations on the 2028-2034 multiannual financial framework. Whilst several member states, notably the net contributors, are calling for a reduction in the Commission’s proposal and refusing to significantly increase their national contributions, the European Parliament is advocating for the creation of new sources of European revenue to safeguard funding for research, competitiveness, defence, agriculture and cohesion.
The EP
European Parliament
has proposed in particular a levy on large digital companies. However, no new source of revenue has yet been finalised: the Irish Presidency of the Council has yet to put forward proposals, whilst any decision will require unanimity amongst member states and the Parliament's approval.
Sense of urgency towards the Single Market
Von der Leyen also addressed the market issue, highlighting Europe’s large market, world-class industries and services, substantial savings and one of the world’s leading currencies, but noted that capital, networks and purchasing power remain fragmented.
She said the Commission had set out an ambitious plan to remove barriers within the EU, allowing innovation, energy, businesses and investment to move more freely across borders. She pointed to the political agreement on the One Europe, One Market Roadmap, aimed at completing a major overhaul of the Single Market by the end of next year.
Von der Leyen said that EU institutions were working to deliver this agenda, but needed to accelerate their efforts: "In today’s economy, speed is of the essence. A permit or a form, a grid connection or a financing decision. All of this can determine where an investment is made, where jobs are created. We need to move much faster. This is why we will put forward proposals to further speed up permitting."
Europe to boost AI Artificial intelligence computing capacity and capabilities
Moving on to the issue of AI, the President said it was rapidly becoming a foundational layer of the European economy and security. She said Europe’s objective should be to harness AI to improve society, quality of life and productivity, while recognising that its growing capabilities also bring significant risks.
While saying Europe should work with partners including Canada and the UK United Kingdom on model evaluation, verification, early-warning systems and AI security, she stressed the need for Europe to develop its own AI capabilities, particularly to protect its national security and strategic independence.
"We need to stay in the race. Because this is crucial for our independence. So we need to massively boost our computing capacity. And we will set out our ideas for how to achieve this in a clean and efficient way. We will also develop new ways to use public and private funds to invest in the most promising European start-ups and companies," she said.
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