Today, the European Commission and the European Investment Bank announced the disbursement of pound 1.8 billion from the Modernisation Fund to support 45 clean energy-related investments in 12 different Member States. This includes the first ever investment in Portugal, which became a beneficiary Member State in 2024.
Financed by revenues from the EU Emissions Trading System (EU ETS), this disbursement brings total Modernisation Fund support to pound 20.7 billion for 294 investments since 2021. The Fund supports the modernisation of energy systems in the EU, specifically high impact projects that will reduce greenhouse gas (GHG) emissions in the energy, industry and transport sectors, and improve energy efficiency. These investments help countries meet their climate and energy targets, implement their National Energy and Climate Plans, strengthen industrial competitiveness, and reduce dependence on fossil fuel imports.
This second disbursement in 2025 adds to the pound 3.66 billion already disbursed in July for 34 investments, bringing the total disbursed in 2025 to pound 5.46 billion and the total number of investments across all beneficiary Member States to 79. This year alone, disbursements were made to Bulgaria (pound 50 million), Croatia (pound 224 million), Czechia (pound 1.78 billion), Estonia (pound 111 million), Hungary (pound 279 million), Greece (pound 163 million), Latvia (pound 40 million), Lithuania (pound 42 million), Poland (pound 1.44 billion), Portugal (pound 15 million), Romania (pound 1.24 billion), Slovakia (pound 26 million) and Slovenia (pound 47 million).
All 79 projects supported in 2025 focus on renewable electricity generation, the use and deployment of renewable energy sources, the modernisation of energy networks and improvements in energy efficiency. Some examples include:
heating and cooling from renewable sources to district heating networks and industry in Bulgaria;
support for the production and utilisation of heat from renewable energy sources and energy efficiency in heating and cooling systems in Croatia;
investments in electricity storage capacity from renewable sources in Czechia;
improvement of energy efficiency and renewable energy use in public sector buildings in Estonia;
upgrading and modernising the electricity network in Greece;
increasing the electricity grid capacity in Latvia;
investments in large-scale energy storage capacities in Lithuania;
improving energy efficiency in municipal thermal baths in Hungary;
development of a clear air programme supporting energy efficiency improvements and heat source replacements in single-family houses in Poland;
renewable based heating and cooling utilising existing geothermal potential, supported by other renewable based sources for natural mineral water facilities and thermal medical facilities in Portugal;
increasing energy efficiency in EU ETS installations in Romania;
modernisation and development of the electricity transmission and distribution network to facilitate integration of renewables in Slovenia;
increasing energy efficiency and reducing (GHG) emissions in industry and related buildings in Slovakia.
Background
The Modernisation Fund, funded by revenues from the auctioning of emission allowances under the EU ETS, aims to support 13 lower-income EU countries (with a gross domestic product per capita below 75 % of the Union average in the years 2016 to 2018) in their transition to climate neutrality. The beneficiary Member States are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia, as well as Greece, Portugal and Slovenia which became eligible for support as of January 2024, under the revised EU ETS Directive.
The Modernisation Fund supports investments in the generation and use of energy from renewable sources, energy efficiency, energy storage, modernisation of energy networks, including district heating, grids, and just transition in carbon-dependent regions. The Fund complements other EU instruments such as cohesion policy, the Recovery and Resilience Facility and the Just Transition Fund. It mobilises significant resources, which can help eligible countries support investments in line with the REPowerEU Plan and the Fit For 55 package. It operates under the responsibility of the beneficiary countries in close cooperation with the European Commission and the European Investment Bank .
The next deadlines for beneficiary Member States to submit investment proposals for Modernisation Fund support are 15 January 2026 for non-priority proposals and 12 February 2026 for priority proposals. Priority investments, accounting for over 90% of the portfolio, focus on modernising energy systems, reducing GHG emissions in energy, industry and transport, and improving energy efficiency listed in the EU ETS Directive. All other investments that qualify for the Modernisation Fund are considered as non-priority investments, subject to additional scrutiny.
Modernisation Fund is a key component of EU climate and energy policy framework for achieve our climate targets for 2030 and beyond. It has proven to be an effective instrument for the targeted Member States, enabling them to accelerate the shift to renewables in their energy systems and leverage EU support.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
The Modernisation Fund is proving that EU ETS revenues can drive real change. By unlocking investment across all Member States, it is helping lower-income countries deliver smarter electricity networks and cleaner transport. Five years on, pound 20 billion disbursed signals a major milestone for Europe’s energy transition.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth
As confirmed by this latest disbursement cycle, the Modernisation Fund has become a key driver of clean energy investments that reinforce the EU’s competitiveness and the pace of allocations has become impressive. The EIB will continue working closely with the European Commission and beneficiary Member States to advance the Fund’s objectives.
Ambroise Fayolle, European Investment Bank Vice-President
Commission allocates pound 1 billion to boost collaborative European defence research and development
The European Commission is investing pound 1 billion in joint defence research and development under the 2026 European Defence Fund (EDF) Work Programme, reinforcing Europe’s collective approach to defence innovation and capability building. Since its launch in 2021, the EDF has supported 224 projects with around pound 4 billion, strengthening cooperation among Member States and advancing shared defence technologies.
Andrius Kubilius, Commissioner for Defence and Space said: ‘Europe must strengthen collaboration in defence, with the European Defence Fund acting as a key foundation for this effort. For the sixth time, we are investing significant resources to incentivise and support research and development on major defence capabilities. With pound 1 billion in the 2026 European Defence Fund, we are putting collaboration at the centre of Europe’s defence innovation. We are turning shared priorities into shared capabilities.’
The 2026 programme will fund 31 collaborative research and development topics in key priority areas agreed by Member States, spanning core defence capabilities, future technologies and defence innovation. It also maintains strong support for small and medium-sized enterprises and mid-caps.
In line with the European Defence Industrial Strategy, the programme introduces new measures to speed up and streamline innovation cycles, particularly for disruptive technologies.
(For more information: Thomas Regnier +32 2 299 10 99, Marine Strauss +32 298 91 03)
Launch of two satellites boosts reliability of Galileo navigation services
Two new satellites were successfully launched today, strengthening the EU’s Galileo satellite navigation system. The launch took place from Europe’s Spaceport in Kourou, French Guiana, aboard an Ariane 6 rocket. The new satellites add capacity to the Galileo constellation and support the system’s long-term reliability.
Galileo is the world’s most accurate satellite navigation system and is used by an estimated 4.5 billion people worldwide. This European system of satellites provides precise positioning and timing services, offering around one-metre accuracy and up to 20 centimetres through its High Accuracy Service. These services support everyday uses such as emergency response, navigation for cars, ships, trains and drones, and timing for telecommunications and financial transactions.
The two satellites will undergo several months of testing and calibration in orbit before entering service. Galileo is funded by the European Union and managed by the European Commission. The system’s services are operated by the EU Agency for the Space Programme, with technical development supported by the European Space Agency and European industry partners.
(For more information: Thomas Regnier +32 2 299 10 99, Marine Strauss +32 298 91 03)
Record 2026 EU funding boosts agri-food promotion as Commission launches new food campaign
The European Commission has announced a record pound 205 million package to co-finance activities promoting sustainable and high-quality EU agri-food products in 2026, both domestically and internationally. The new promotion programme aims to strengthen the global competitiveness of the European agri-food sector by exploring new markets while consolidating current ones.
One of the highlights of the year will be the launch of the ‘Buying European Food Products’ campaign, aimed at increasing consumption and celebrating the outstanding quality of European agri-food products, thus strengthening the relationship between consumers and producers. Funding will be distributed between promotion in third countries such as China and North America, and the EU internal market, with allocations of pound 70.3 million and pound 79.7 million respectively.
Christophe Hansen, Commissioner for Agriculture and Food, stressed that these initiatives are crucial for valuing European products and maximising the benefits of trade agreements.
You will find more information in a press release online.
(For more information: Balazs Ujvari – Tel.: +32 2 295 45 78; Constanze Ulrich – Tel.: +32 2 299 38 44)
Creative Europe drives billions in investments and boosts visibility of EU works
Creative Europe has successfully contributed to safeguarding cultural diversity, strengthening competitiveness and empowering the cultural and creative sector as well as the audiovisual sector to cooperate beyond national borders. These findings are outlined in the report adopted by the Commission evaluating a decade of Creative Europe, the EU’s flagship funding programme for culture and media.
On the media side, European films and series supported by the MEDIA strand were significantly more accessible via TV, cinemas and video-on-demand, by factors of 9.5, 6.6 and 3.2 times respectively, compared to similar EU works not supported by MEDIA.
At the same time, the Culture strand of the programme supported over 1,800 projects involving 6,700 organisations and funded almost 500,000 mobility days for artists and culture professionals, helping their works circulate beyond national and linguistic borders.
The Cultural and Creative Sectors Guarantee Facility, implemented together with the European Investment Fund, leveraged almost pound 2 billion in loans and reduced the shortfall in access to debt finance by up to 30%. Its success paved the way to the launch of an equity instrument for the audiovisual sector – MediaInvest.
In 2021, Creative Europe also started funding high-quality news media projects to promote media independence, pluralism and media literacy.
Going forward, the report highlighted that funding is crucial to continue supporting the media and the cultural and creative sectors’ needs to unlock their full potential and to continue adapting to the significant market, technological and other challenges they face, while widening access to a diversity of cultural content across borders.
The report covers the final evaluation of the 2014-2020 programme and the mid-term evaluation of the current programme. More insights can be found online.
(For more information: Thomas Regnier – Tel.: + 32 2 299 10 99; Eva Hrncirova – Tel.: +32 2 298 84 33; Nika Blazevic – Tel.: + 32 2 299 27 17; Eirini Zarkadoula – Tel.: +32 2 295 70 65)
Commission publishes first draft of Code of Practice on marking and labelling of AI-generated content
The first draft of the Code of Practice on marking and labelling of AI-generated content was published today in line with the timeline to finalise the code in June 2026.
Article 50 of the AI Act includes obligations for providers to mark AI-generated or manipulated content in a machine-readable format, and for users who deploy generative AI systems for professional purposes to clearly label deepfakes and AI-text publications on matters of public interest. To help providers and deployers meet these requirements, the Commission is facilitating the development of a voluntary Code of Practice drafted by independent experts, ahead of these rules entering into application.
The draft Code of Practice consists of two sections. The first section covers rules for marking and detecting AI content, applicable to providers of generative AI systems. The second section covers labelling deepfakes and certain AI-generated or manipulated text on matters of public interest and is applicable to deployers of generative AI systems.
The Commission will collect feedback on the first draft from participants and observers to the Code of Practice until 23 January. The second draft will be drawn up by mid-March 2026, with the Code expected to be finalised by June next year.
The rules covering the transparency of AI-generated content will become applicable on 2 August 2026.
More information is available online.
(For more information: Thomas Regnier – Tel. + 32 2 299 10 99; Nika Blazevic – Tel. + 32 2 299 27 17)
EU and Western Balkans partners take further steps to implement initiative for fast-track lanes
This morning, Commissioner for Enlargement Marta Kos witnessed the signature of three bilateral operational agreements strengthening custom cooperation between the customs administrations of Albania, Moldova, and North Macedonia with Greece, Bulgaria and Italy. The memoranda, which form part of the EU Moldova Growth Plan and the EU-Western Balkans Green Lanes initiative, led by the Transport Community and Central European Free Trade Agreement (CEFTA), aim at reducing waiting times at border crossings and facilitating the movement of goods.
The three new agreements build on existing bilateral memoranda already in place at other borders between partners in the region. The provisions on customs data exchange between EU and non-EU countries can only be put in place when the necessary EU legal framework is established and the EU Customs Reform will be in place.
In parallel, the EU has also made available pound 54 million to invest in 11 priority border crossing points ensuring smoother transit of goods. This is a concrete step in the gradual integration of Western Balkans partners into the EU’s single market, as foreseen in the EU’s Growth Plan for the Western Balkans adopted in 2023.
(For more information: Guillaume Mercier – Tel: +32 2 298 05 64; Quentin Cortes – Tel: +32 2 291 32 83)
Commission on track to meet 2030 climate-neutrality objectives
Yesterday, the College adopted the Greening the European Commission Progress Review report. This report evaluates the progress made towards fulfilling the 2030 emissions targets and the implementation of actions since the adoption of the Communication on Greening the Commission in 2022, which reflects the Commission determination to be a front runner in the transition towards a climate-neutral society. As part the Communication, the Commission set out an action for achieving climate neutrality, first through reducing the Commission’s carbon emissions by 60% between 2005 and 2030 (a decrease of 38% between 2019 and 2030) and compensating any remaining emissions with high quality certified carbon removals. The Progress Review report also considers complementary actions on the road of achieving of climate neutrality by 2030.
The report shows that the Commission is well on track towards its 2030 target, managing to reduce its overall carbon footprint by 31% by 2024, compared to 2019 levels. In particular, the Commission made good progress related to emissions from buildings, with a reduction of 26% across all sites against 30% target by 2030. Regarding staff commuting, there has been a reduction of 49% at all sites, against of the 45% target by 2030. On external experts travel, there has been a 59% reduction against the 50% target by 2030. In the case on emissions from staff professional travel, the Commission will continue its efforts to achieve the 50% target by 2030 at the latest.
Based on the 2024 results, the Commission appears on track to achieve its overall objectives. Still the emissions reduction target for the Commission remains ambitious and further efforts are needed to reach a CO2e reduction.
You can read the Progress Report on Greening the Commission and more on the institution’s green policies online.
(For more information: Balazs Ujvari – Tel.: +32 2 295 45 78; Isabel Otero Barderas – Tel.: +32 2 296 69 25)
Joint Statement by Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency Maroš Šefcovic and HM Paymaster General and Minister for the Cabinet Office The Rt Hon Nick Thomas-Symonds MP
In May, the United Kingdom and the European Union held their first ever Summit and agreed to strengthen cooperation through a new strategic partnership. This partnership will make us more secure, will put people in the centre of the relationship and will support businesses to grow.
Following the Summit, the European Commission and the United Kingdom have concluded their negotiations for the UK’s association to Erasmus+ in 2027. The United Kingdom association to Erasmus+ in 2027 would offer significant opportunities across the education, training, sport and youth sectors for individuals in the United Kingdom and the European Union, particularly for those in the younger generation. The European Commission and the United Kingdom look forward to these opportunities becoming available. They are pleased that the specific terms of this association, including mutually agreed financial terms, represent a fair balance between the UK’s contributions and the benefits the programme offers and pave the way for United Kingdom participation in the programme in 2027.
The United Kingdom and the European Commission have also concluded exploratory talks on the United Kingdom’s participation in the European Union’s internal electricity market, with the details set out in letters to be published in the coming days. The European Commission and the United Kingdom will now work towards negotiating the United Kingdom’s participation in the internal electricity market of the European Union and set out the necessary framework for that participation. Closer cooperation on electricity would bring real benefits to businesses and consumers across Europe, drive up investment in the North Seas and strengthen energy security.
The Commission and the United Kingdom will proceed swiftly on the United Kingdom’s association to Erasmus+ and on the negotiations of the United Kingdom’s participation in the internal electricity market of the European Union in accordance with their respective procedures and legal frameworks and in respect of each other’s decision-making autonomy.
The United Kingdom and the European Commission underline their commitment to implementing the outcomes of the May 2025 Summit in a timely manner, and aim in particular by the time of the next EU-UK Summit to conclude the negotiations on the Youth Experience Scheme, on establishing a common Sanitary and Phytosanitary Area and on linking our Emissions Trading Systems.
The European Commission and the United Kingdom also underline their commitment to full, timely and faithful implementation of existing agreements, namely the Trade and Cooperation Agreement and the Withdrawal Agreement, including the Windsor Framework.
Commission strengthens the Carbon Border Adjustment Mechanism
The Commission proposed measures to close loopholes to prevent circumvention and strengthen the efficacy of EU’s Carbon Border Adjustment Mechanism’s (CBAM), in response to feedback received from industry. Starting January 1, 2026, CBAM’s scope will expand to include specific steel and aluminium-intensive downstream products, while closing loopholes to prevent circumvention.
Answering the call of the sector, a temporary support scheme is being introduced to protect EU producers vulnerable to carbon leakage, rewarding cleaner companies globally and fostering a fair, competitive environment.
Today’s proposals also take into account concerns raised by trusted international partners, which will benefit from some simplifications and flexibilities. It introduces the concept of equivalence in carbon tax and price deduction, and includes a new clause allowing for negotiated trade facilitation measures, such as mutual recognition of trustworthy accreditation bodies, and new facilities on equivalence of carbon price deduction.
This will further strengthen CBAM’s role in promoting decarbonisation beyond EU borders, facilitated by outreach and technical aid, which is confirmed in the CBAM Review report, unveiled today.
The measures proposed today:
Extension to downstream products
The EU’s Carbon Border Adjustment Mechanism (CBAM) currently targets basic materials like aluminium, cement, electricity, and steel.
From 2026, importers will pay a carbon price for emissions tied to these goods, levelling the field with EU-produced materials subject to the EU’s Emissions Trading System (ETS). While this safeguards against carbon leakage, it raises costs for EU producers using these materials in downstream products, such as washing machines. Production may shift to countries with weaker climate policies, or EU goods might be substituted with carbon-heavy imports.
To combat this, the Commission plans to expand CBAM’s reach to include 180 steel and aluminium-intensive products, like machinery and appliances, ensuring emissions are reduced rather than relocated.
The vast majority, 94%, of these downstream goods concerned are industrial supply chain products with a high (on average 79%) steel and aluminium content, used in heavy machinery and specialised equipment, such as base metal mountings, cylinders, industrial radiators, or machines for casting. A small share, 6%, of the downstream goods concerned are also household goods. An EU producer of such downstream products can face increased costs for the steel and aluminium materials used in the production process.
Additional anti-circumvention measures
Building on lessons from the transitional period, the European Commission is reinforcing strategies to combat circumvention risks identified in the ‘Steel and Metal Action Plan’ and via stakeholder consultations.
Promoting scrap usage to cut emissions in energy-intensive products, the Commission is now incorporating pre-consumer aluminium and steel scrap in CBAM calculations. This ensures fair carbon pricing for both EU-made and imported goods.
Key proposals include enhanced reporting requirements for better traceability of CBAM goods and addressing emission intensity misdeclarations. The Commission gains authority to tackle evidence-based abuses circumventing CBAM’s financial responsibilities, requiring additional evidence when actual values are unreliable, and defaulting to country values in such specific cases.
Temporary Decarbonisation Fund
The European Commission has launched a fund to temporarily support EU producers of CBAM goods and mitigate carbon leakage risks. This addresses the competitiveness loss in third-country markets where EU goods might be supplanted by cheaper, more emission-intensive alternatives, potentially increasing global emissions.
The fund will reimburse a portion of the EU-ETS carbon costs for goods still facing carbon leakage risks, with support contingent upon demonstrated decarbonisation efforts.
Financing will come from member state contributions, constituting 25% of revenues from CBAM certificate sales in 2026 and 2027, while the remaining 75% will be an EU Own Resource.
CBAM review report
The Commission also published a report reviewing the experience with the delivery of the CBAM during the transitional period from October 2023 to the end of 2025. It evaluates CBAM’s contribution in addressing carbon leakage and fostering global carbon pricing, and examines governance, administration and enforcement as well as CBAM’s international dimension.
The findings highlight CBAM as a key driver in the promotion of decarbonisation in countries outside of the EU, partly due to the outreach and technical assistance provided to facilitate implementation. The report also sets out the implementation roadmap and accompanying measures required to secure an efficient and effective definitive regime from 2026 onwards.
Background
The CBAM is an environmental measure pivotal to reach the EU’s climate objective of climate neutrality by 2050, developed in line with the commitments under the Paris Agreement. While the ETS prices carbon production within the EU, CBAM puts a price on producers selling goods within Europe. Launched in its transitional phase in October 2023, CBAM allowed for a predictable and proportionate transition for EU and non-EU businesses. After two years of transitional period, the CBAM financial adjustment will be progressively phased in as of 1 January 2026. This will mirror the phase-out of free allocations under the EU ETS, which will take place until 2034. The EU is through Global Europe actively supporting decarbonisation in third countries, this represents 8 times the expected funds from the future CBAM own resource.
For more information
Questions and answers
Implementing Acts and Delegated Acts (Carbon Border Adjustment Mechanism – Taxation and Customs Union)
CBAM Review report (Carbon Border Adjustment Mechanism – Taxation and Customs Union)
Quote(s)
European industrial producers should be encouraged – and not deterred – in their decarbonisation efforts. This CBAM reform brings crucial and long-awaited measures to ensure a level playing field between EU and non-EU industrial producers. By strengthening CBAM, we support our industry’s decarbonisation, and secure European players’ competitiveness on the world stage. Today, the European Commission delivers on its commitments towards Europe’s strategic industrial sectors.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy
Today, we are strengthening CBAM for competitiveness, climate, and independence. These measures protect Europe’s industries, safeguard climate investments, and ensure fair competition while cutting emissions. Building on lessons from the transitional period, this package prepares CBAM for the future at the heart of Europe’s clean and competitive transition.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth
Speech by President von der Leyen at the European Parliament plenary debate in preparation of the European Council meeting of 18-19 December 2025, in particular the need to support Ukraine, transatlantic relations and the EU’s strategic autonomy
‘Check against delivery’
President Metsola,
Minister Bjerre,
Honourable Members,
This week’s European Council is about facing the reality of the moment. The reality of a world that has become dangerous and transactional. A world of wars. A world of predators. The reality of this world means we, Europeans, must defend ourselves and we must depend on ourselves. We have been living in this world for some time. Even before the biggest wake-up call of all, Russia’s illegal invasion of Ukraine in February 2022. Yesterday’s peace is gone. We have no time to indulge in nostalgia. What matters is – how we confront today. We, Europeans, cannot afford to let the worldviews of others define us. None of us should be shocked by what others say about Europe. But let me say this, it would not be the first time that assumptions about Europe were shown to be outdated. And it would not be the first realisation that the postwar world order is changing beyond recognition. The National Security Strategy is right to say: ‘Europe has been losing share of global GDP – down from 25% in 1990 to 14% today.’ But what is not written – is that the figures for the USA are on the same path. From 22 % in 1990 down to 14% today. So, this is not a story of an economy on one side of the Atlantic or the other. This is the story of the shift in the world economy. If you take China alone, their share of global GDP went up from 4% in 1990 to 20 % today. This is why the United States has been clear for some time about its shifting strategic interests and priorities as China rises. The point I am making is: This Strategy is not the cause of the disruption that Europe is facing in the world. It is a symptom of the reality of today’s world. So our task at this week’s Summit is to show that we are focused on our strategic interests and our priorities. I want to repeat what I said in this very spot during my State of the Union address – this is Europe’s independence moment.
Honourable Members,
Ever since we started using this term – independence – many have been sceptical about what that entails. Is this even realistic? Just look at what we have already done. From defence to energy, we have made the impossible possible as part of our new reality. And we are ready to do more. Because in our independence, we make ourselves stronger. A stronger Europe is a stronger partner, not just to promote, but to guarantee a safer world.
Let us look at the progress we have made. We are approaching a new era, Europe’s energy independence from Russia. And this House has been a leader on this from day one. I thank you. Your efforts have paid off. Because thanks to REPowerEU, Russian gas imports – LNG and pipeline – are down from 45% at the beginning of the war to 13% today; coal imports, from 51% to now zero; and on crude oil, from 26% to 2%. All this means we are going to phase out Russian fossil fuels for good, forever. Just a few years ago this was unthinkable. But we acted, and we are earning our independence from Russia. This is not a coincidence. This is hard work. But it was driven by what makes us European. Our sense of purpose. Our union. Our political will. We now have our template for the way forward. Whether it be on critical raw materials with our RESourceEU Plan, or on diversification and strengthening supply chains through ambitious trade agreements from Latin America to the Indo-Pacific. Europe’s era of independence must be unstoppable.
But we have more work to do. We have to go further, and we must move swiftly. Whether it is for our security, our economy, our democracy. And that is particularly important when it comes to defence and security. The bottom line is simple – Europe must be responsible for its own security. This is no longer an option. It is a must. We know the threats that we face, and we will confront them. This means we need to be ready. We have to develop and deploy new capabilities so that we can fight a modern hybrid war. Here again, we are moving mountains. After decades of under-investment, we are turning a corner. We are transforming our defence industrial base into one that can deliver cutting-edge technologies and fast mass production in the cauldron of war. This year, we have done more for defence than in the last decades. Over the last 10 years, we invested EUR 8 billion in the defence fund. This year we enable up to EUR 800 billion of investment until 2030. And we have seen how oversubscribed our SAFE programme has been – with the demand from 19 Member States far outstripping the EUR 150 billion on the table. And Member States are already asking for a new round of SAFE. This shows our European commitment to our European security. And this surge is not only about defence. It is about our freedom, our prosperity and our independence.
And there is no more important act of European defence than supporting Ukraine’s defence. The next days will be a crucial step for securing this. It is up to us to choose how we fund Ukraine’s fight. We know the urgency. It is acute. We all feel it. We all see it. Because just as peace negotiations are stepping up, so is the intensity of Russia’s barrage of attacks. But Russia does not have just Ukraine in its sights. It is escalating its operations on EU territory. And it has moved to a full war-time economy. This is a direct threat to Europe’s national and economic security.
The IMF and our estimates show that Ukraine’s needs are just over EUR 137 billion in 2026 and 2027. Europe should cover two-thirds. And this is not just about numbers, this is also about strengthening Ukraine’s ability to secure a real peace – one that is just, one that is lasting, one that protects Ukraine and Europe.
And it is also about ramping up the cost of war for Russia. This is why I proposed two options for reparations: Based on the assets and based on EU borrowing. Last week we agreed on the sustained immobilisation of Russian assets. This is a decisive step that sends a strong political message. It means that the Russian assets will remain immobilised until we decide otherwise, until Russia stops the war and duly compensates Ukraine for all the damages done. With the assets immobilised indefinitely, we can turn this into a real game changer for Ukraine and for Europe.
Honourable Members,
We will speak a lot in this debate about the need for European independence and how we achieve it. And this European Council and the decision on Ukraine is a central part of this. But we must always remember why independence is so important in today’s world. It is so important because independence is ultimately about our freedom. The freedom to decide and make laws for ourselves, to act however we want, to pursue our own interests and our own partnerships. The freedom to vote for whoever we want – without being pressured or subjected to a torrent of manipulated information. The freedom to choose diversity, democracy. But above all it is about the freedom to live the way we want – the European way. Our cultures and traditions are so distinct and so central to our way of life. This is what binds us together. And when we are united, we are unstoppable. And I am deeply proud of that. Our differences do not divide us. We celebrate our cultures. They connect us as Europeans. And the pride we have in Europe is what connects us. So as we look ahead, I urge you to be confident in what we can achieve in our quest to be a strong, independent Europe.