Von der Leyen's 2026 State of the Union draws mixed reactions as EU faces competing pressures
The President of the European Commission, Ursula von der Leyen, delivered her annual State of the Union address to the European Parliament in Estrasburgo on 16 September 2026, outlining an ambitious legislative agenda centred on competitiveness, security and social protection while facing criticism from across the political spectrum.
The speech, which set out the Commission's priorities for the coming year, touched on issues that directly affect Portugal's economy and its citizens' daily lives — from energy prices and housing costs to the regulation of artificial intelligence and children's online safety.
Competitiveness and economic measures take centre stage
Von der Leyen announced a roadmap called "One Europe, One Market" aimed at completing the single market by 2027, alongside proposals to accelerate licensing procedures and end unjustified territorial restrictions that can fragment trade across member states.
For Portuguese businesses, the package includes measures that could simplify cross-border operations: a competitiveness and simplification package for the banking sector, another for the transport sector, and the creation of a European Corporation for Critical Raw Materials intended to reduce dependency on foreign suppliers.
The Commission also confirmed it will present a new technology package in June 2026, including Chips Act 2.0 and acts on cloud and artificial intelligence development. The President emphasised what she called "industrial AI" as a way to build on Europe's industrial strengths.
A trade agreement with Mercosur — the South American bloc that includes Brazil, Argentina and other major economies — was signed in January 2026, potentially opening new markets for Portuguese exporters. The Commission also noted that member states have agreed to provide €90 billion in budgetary and military support to Ukraine for 2026 and 2027.
Social policies and children's online protection
The speech confirmed the forthcoming EU Kids Act, a regulation that would ban social media use for children under 13 and restrict it for adolescents aged 13 to 15 — a measure that would affect how Portuguese families manage their children's digital lives.
Other social initiatives include a simplification package for housing, a European Care Pact, and European University Alliances 2.0. The Commission also pledged to continue its skills guarantee programmes.
These proposals come amid widespread concern about housing affordability across Portugal, where rental prices in major cities have outpaced wage growth. The European Commission's housing package could influence national housing policies, though its final form remains to be negotiated.
Security and climate initiatives
On security, von der Leyen proposed what she called a "military Schengen" plan to facilitate the movement of troops and military equipment across national borders. She also outlined five major joint security projects for July 2026, including an Eastern Flank Watch, a European Air Shield and a European Space Shield.
Climate-related announcements included a European Heat Wave Plan, a European Water Initiative and a Climate Change Insurance Alliance. She also called for a review of CO2 emission standards for heavy-duty vehicles — a proposal that drew immediate reaction from industry groups and political parties across the continent.
Political reactions reveal deep divisions
The response from political groups in the European Parliament revealed familiar fault lines on EU policy, with criticism coming from both right and left.
Manfred Weber, leader of the European People's Party — the centre-right group that includes Portugal's PSD — welcomed the focus on artificial intelligence and the EU Kids Act but said his group would push for reforms to the emissions trading system and fight to preserve combustion engine technology.
The Socialists and Democrats, which include Portugal's PS, criticised what they saw as an overemphasis on competitiveness and deregulation. The group's leader, Iratxe García Pérez, called for affordable housing and better prospects for young people, arguing that social concerns had been marginalised.
The Greens/European Free Alliance, which includes Portuguese MEPs, accused the Commission of failing to respond adequately to the extreme weather events that affected Europe during the summer. Co-president Terry Reintke said her group would push for an inquiry into the Commission's failure to meet Green Deal commitments.
Groups further to the right delivered some of the harshest criticism. The Patriots for Europe and the European Conservatives and Reformists described the speech as a "complete detachment from reality" and a "long series of broken promises" on industrial policy. ECR co-president Patrick Jaky noted that bureaucracy reduction had been promised but not delivered.
The Left, meanwhile, accused von der Leyen of weakening workers' rights while living costs rise, and called for European taxes on major technology companies, wealthy individuals and excess profits.
What changes for Portugal
Several proposals now enter the legislative process in Brussels, where Portugal's 21 MEPs will vote alongside colleagues from other member states. The EU Kids Act, the single market roadmap, and the various simplification packages will require approval from both the European Parliament and the Council of the EU — where Portugal's government has a seat.
The European Commission has committed to new "own resources" — EU-level revenue sources — to finance future priorities, a debate that could affect Portugal's net contribution to the EU budget.
Implementation timelines vary: the technology package is slated for June 2026, the security projects for July 2026, while the target date for completing the single market is 2027.
The address also marked an unusual diplomatic note: von der Leyen proposed making Canada the EU's first "associated member", deepening cooperation on defence, economy, technology and security — a move that would require treaty changes and remains subject to member state negotiations.
