Today’s State of the Union address acknowledged the scale of the challenges facing Europe. But announcements alone will not make Europe stronger. Security and competitiveness must go hand in hand with social progress, climate action, democratic consistency, and the common investment needed to deliver.
The State of the Union address did not give sufficient answers to the pressures facing Europeans in their daily lives. The cost-of-living crisis, fair wages and the investment needed for housing, care and the green transition received far less attention than their urgency demands. Saying that “people will always come first” is not enough. That commitment should be demonstrated through concrete political choices and investment.
While ordinary people struggle with the cost of living, surge of energy prices cannot come as an opportunity for big corporations. The speech lacks a credible agenda for tax fairness. It offers no proposal to address the windfall profits generated in times of crises, even as high energy prices continue to place a heavy burden on households and businesses. The PES supports a European framework to recover windfall corporate profits generated in times of crisis and prevent speculation, including through windfall profit taxation.
PES President Stefan Löfven said:
“Europe must be strong to protect its people and fair enough to improve their lives. European strength cannot be measured only in terms of defence capabilities, industrial power or global influence. It must also be measured by whether people can afford a home, earn a decent wage, access quality public services and face the future with confidence.
The commitments on quality jobs, affordable housing, care, climate action, and the European Pillar of Social Rights are important. Progressives have consistently pushed these priorities onto the European agenda. We will now work to ensure that they lead to ambitious legislation and concrete results for people across Europe.
For us, competitiveness is a political objective, not a mandate for deregulation. Europe needs simpler and more predictable rules. Good regulation protects workers and consumers, gives businesses certainty, ensures energy security, promotes environmental sustainability, safeguards privacy, and shields our economy from unfair competition and systemic risks. Europe also needs the common investment to deliver on its ambitions.
The strongest answer to the far right is a democracy that delivers for people. When citizens face insecurity, rising costs, unaffordable housing or precarious work, political leaders must tackle those problems, not turn migrants, minorities, and vulnerable people into scapegoats. Strong public institutions, quality public services, decent jobs and wages, and a strong welfare state are essential to guarantee trust in democracy.
But delivery must go hand in hand with political courage. President von der Leyen is right to warn against anti-democratic and anti-European forces. Those words must be matched by action. Her own political family, the EPP, must stop teaming up with the far right and relying on its votes. Democratic parties cannot allow the far right to define the political mainstream or help normalise forces that undermine equality, fundamental rights, and the rule of law.
Europe must remain united in support of Ukraine and firm in the defence of our shared security and democracy. Ukrainians are defending not only their own freedom and sovereignty, but also Europe’s right to determine its own future. The European Union must show the same determination in defending international law everywhere. The suffering in Gaza and the violence in the West Bank demand stronger and more united European action to protect civilians, uphold human dignity and defend a credible two-state solution.”
Read the full PES statement on the 2026 State of the Union here.
