Report by President António Costa to the European Parliament plenary session 17:57 European Council President António Costa debriefed the European Parliament plenary in[...]

A lot has happened since our last plenary discussion two months ago. The world around us has become even more geopolitically unstable. We are now faced with the direct and indirect consequences of the developments in Iran and the Middle East. Meanwhile, none of the other challenges around us have gone away, especially as Russia's war of aggression in Ukraine continues into its fifth year.

However, in the midst of this geopolitical context, Europe is continuing to pursue an ambitious economic agenda. In fact, that agenda is becoming more urgent by the day.

I come to you just a few days after a European Council that took decisive action on Europe's competitiveness. In doing so, European Leaders delivered on the spirit of Alden Biesen - a meeting that had provided a new momentum for the European Union's economic strategy. European Leaders delivered through clear, concrete targets, with ambitious and measurable timelines.

I am talking about the 'One Europe, One Market' agenda the European Council launched last week. This is an ambitious action plan, to be implemented until the end of 2027, but mostly during this year of 2026. Let me outline some of the priorities we agreed on.

We will focus on the completion of the single market, in particular by tackling the already identified 'terrible ten' barriers by March 2027. Furthermore, Leaders want to see swift progress to improve the mutual recognition of professional qualifications, to ensure the mobility of workers in Europe.

By the end of 2026, Leaders expect the endorsement of the Commission's newly presented proposal to create a single voluntary 28th regime for all companies wishing to adopt it, to help them to operate seamlessly and with a single set of rules within the European Union.

Concrete decisions are also needed by the end of the year on the Savings and Investment Union proposals, in order to mobilise savings, increase private investment, and create a truly integrated European capital market.

We also need to urgently continue with our ambitious simplification agenda, to reduce existing red tape, but also ensuring that new initiatives are in line with the 'simplicity by design' principle.

Simpler rules and less gold-plating by member states: that is also why European Leaders have called for regulations to be favoured over directives.

Beyond the single market and simplification, the European Council underlined that we need to take determined action to increase our strategic autonomy and reduce dependencies. In strategic sectors and technologies, a targeted and proportionate 'European preference' is needed, and in this regard, the Industrial Accelerator Act should be agreed by the end of the year.

Last but not least, it is clear that high energy prices are one of the biggest challenges for the competitiveness of the European Union. The current crisis in the Middle East and its impact on global energy supply confirm that the path we have chosen is the right one: decarbonisation and the acceleration of homegrown energy sources, in a technologically neutral way, remain the right way forward to limit dangerous dependencies and lower energy prices in the long term.

There was no ambiguity on this in last week's European Council. However, it was clear that at the same time we need to take immediate action to protect our citizens and businesses. In this regard, the Commission will present a set of temporary and targeted measures, taking into account the specific situations of member states, and the particular vulnerability of certain energy-intensive industrial sectors, in order to counter the risk of relocation and to protect jobs.

In short, the 'One Market, One Europe' agenda is ambitious, it is concrete and it is urgent; and it represents a real policy acceleration towards a more competitive Europe.

But, let me be clear. This change of pace and ambition will not bear fruit without you. The Parliament, together with the Council, will be the institution turning this agenda into tangible changes and benefits for European citizens and businesses. The Parliament will have its full say in shaping these decisions.

We are working together towards a common objective: a more competitive and more innovative Europe. But this agenda is much more than that. It provides the solid foundation we need to protect and develop our prosperity and our social model. It means quality jobs. It means affordability. And it means leaving no one behind as Europe deals with harsh global competition.

At the same time, this economic strength is also a strategic imperative. It will allow us:

• to eliminate harmful dependencies
• to ensure our sovereignty, even when it comes at a cost
• to increase and sustain our growing investment in defence
• to support Ukraine as long as it takes

We need to act together to ensure that we have the economic muscle to do all this.

The current geopolitical context is acting as a catalyst for our competitiveness agenda. But it is also putting our values to the test. And we must continue to defend the rules-based international order, and uphold the principles enshrined in the United Nations Charter and our Treaties. Violations of international law must not be accepted anywhere. The European Union must continue to stand firm on this.

In the meeting with the United Nations Secretary General, António Guterres, during the European Council, it was once again clear that the European Union is - and will continue to be - a staunch defender of multilateralism. In fact, the European Union must become one of the main driving forces of a network of multipolarity, in support of multilateralism, international law and the United Nations. That is the European Union's international vocation. And that is in the European Union's interest.

The European Union will continue to be a force for stability, standing up for the international rules-based order. And we will take firm action to ensure our capacity to act in an unstable world. The implementation of the 'One Europe, One Market' agenda is key in this regard.

I look forward to continuing to work closely with this Chamber to achieve this.