In a wide-ranging speech, the President of the Commission reveals plans for a business model "EU Inc.", an 800 billion euro defense increase, and a robust Arctic strategy to counter US tariffs.
Davos, January 20, 2026 – Delivering a special address at the World Economic Forum today, the President of the European Commission, Ursula von der Leyen, stated that Europe must take advantage of the current geopolitical instability as an opportunity to build a new form of "European independence". In a speech that ranged from regulatory reviews to Arctic security, she announced an imminent trip to India to finalize what she called "the mother of all agreements".
In short
Von der Leyen announced a trip to India to finalize a historic trade agreement, creating a combined market of 2 billion people.
The Commission will propose a "28th regime" (EU Inc.) to allow companies to operate under a single set of rules within the bloc.
The President dismissed US tariffs, reaffirming "non-negotiable" support for Greenland and announcing a new European Arctic security strategy.
Marking the 55th anniversary of the meeting in Davos, von der Leyen argued that "nostalgia will not bring back the old order" and that Europe must change permanently to reduce structural dependencies. A central pillar of this transformation is trade. Fresh from signing the EU-Mercosur agreement in Asunción, she revealed that she will travel to India immediately after the forum. "We are on the brink of a historic trade agreement," she said, describing it as a pact that would tie Europe to one of the fastest-growing economies in the world.
To boost competitiveness, von der Leyen unveiled a radical proposal for a "28th regime", informally called "EU Inc." This legal framework aims to circumvent the fragmentation of national regulations, allowing entrepreneurs to register a company entirely online within 48 hours and operate under a single set of rules across the Union. "We need a system where companies can do business... as easily as in uniform markets like the US or China," she explained.
Regarding security, the President emphasized that member states are mobilizing up to 800 billion euros for defense by 2030. She mentioned that the European defense industry has tripled its market value since 2022, defending new "unicorns" in AI technology and drones. Concerning Ukraine, she confirmed a loan of 90 billion euros for 2026-2027 and the permanent immobilization of Russian assets, stating that Russia shows "no signs of seeking peace".
The speech took a significant turn in addressing recent tensions with the United States regarding Greenland. Von der Leyen criticized the additional tariffs proposed by the US as a "mistake among long-term allies", reminding Washington that "an agreement is an agreement".
She presented a four-point plan for Arctic security:
Full solidarity: The sovereignty of Greenland and Denmark is "non-negotiable".
Investments: A massive increase in European investments in Greenland's infrastructure.
Capabilities: Utilizing increased defense spending to develop independent European icebreaker capabilities.
Alliances: Strengthening security partnerships with the UK, Canada, Norway, and Iceland.
"Europe is preparing its own security strategy, which we intend to publish during this year," she concluded, signaling a shift towards a more autonomous geostrategic position.
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