European Commission President Ursula von der Leyen used her opening address at the World Economic Forum in Davos to declare that Europe must build “a new form of European independence” as the continent faces mounting pressure from US President Donald Trump.
Speaking on Tuesday, von der Leyen framed the current geopolitical upheaval—including Trump’s tariff threats and territorial demands—not as a crisis to be weathered, but as a permanent shift requiring permanent European transformation.
“If this change is permanent, then Europe must change permanently too,” she told global leaders. “It is time to seize this opportunity and build a new independent Europe.”
The speech came days after Trump threatened 200% tariffs on French wine, 25% tariffs on multiple European nations over Greenland, and published private diplomatic messages from French President Emmanuel Macron.
‘Nostalgia will not bring back the old order’
Von der Leyen dismissed any hope of returning to previous transatlantic arrangements.
“Nostalgia is part of our human story. But nostalgia will not bring back the old order,” she said. “And playing for time—and hoping for things to revert soon—will not fix the structural dependencies we have.”
She drew a parallel to the 1971 “Nixon shock” when the US abandoned the gold standard, collapsing the Bretton Woods system and forcing Europe to strengthen its economic power.
Trade pivot and economic reforms
Von der Leyen pointed to Saturday’s EU-Mercosur agreement as evidence Europe is already pivoting, creating the world’s largest free trade zone with over 700 million consumers. Europe is pursuing similar deals with India, Australia, the Philippines, Thailand, Malaysia and the UAE.
“Europe will always choose the world. And the world is ready to choose Europe,” she said.
She outlined three economic priorities: creating “EU Inc.” to allow businesses to operate seamlessly across the bloc’s 450 million consumers; completing a Savings and Investment Union to keep European capital in Europe; and building an interconnected energy market through nuclear and renewables.
European defence spending will reach €800 billion by 2030, having tripled defence company valuations since 2022.
Ukraine and Greenland
Von der Leyen reaffirmed Europe’s €90 billion loan to Ukraine for 2026-2027, while recognising “President Trump’s role in pushing the peace process forward.”
On Greenland, she was uncompromising: “The sovereignty and integrity of their territory is non-negotiable.” Europe will respond with full solidarity, a massive investment surge in Greenland, and development of European icebreaker capabilities.
Direct warning to Trump
“The proposed additional tariffs are a mistake especially between long-standing allies,” she said. “The EU and US have agreed to a trade deal last July. And in politics as in business—a deal is a deal.”
Breaking that deal would aid “the very adversaries we are both so committed to keeping out,” she warned.
“Our response will be unflinching, united and proportional.”
The speech represented the most comprehensive articulation yet of how Europe plans to respond to Trump’s second presidency—not by hoping for normalcy, but by fundamentally restructuring its economic, defence and diplomatic relationships.
Trump arrives in Davos on Wednesday, where his own address will likely define the contrast in transatlantic visions for years to come.
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Photo: Taken from European Commission video of speech