“Check against delivery”
Dear Chairman of the Munich European Conference, dear Manfred Weber,
Dear Minister-President Söder,
Dear Mr. Wintergerst,
Dear Mr. Konstantinidis,
Dear Ministers,
Dear Members of Parliament,
Ladies and gentlemen,
Good evening to you all,
First and foremost, I would like to express my deep shock, sorrow, and outrage over the terrible attack that took place here in Munich today, in which many people were injured, some of them severely and critically. I had just arrived in the city when I heard the shocking news. Since then, it has not left my thoughts. I think of the innocent victims whose lives have been dramatically changed in an instant. My thoughts are with them and their families.
Despite these dramatic events, it is a great pleasure for me to be here at the Munich European Conference today. I thank you, and especially Manfred Weber, for the invitation. It is always a pleasure for me to be in Germany. In my twenties, I lived in Germany for two years. Since then, I have always been impressed by Germany’s great hospitality.
What makes Munich and Bavaria special to me is the unique interplay of history and modernity. Your rich centuries-old traditions give you strong roots and a deep sense of regional identity that grounds you. At the same time, with this foundation, you have the ability to take bold steps forward, embracing progress and innovation. You have major technology companies here. Outstanding talent from around the world. World-class research institutions. High-tech start-ups.
Today, I visited DeepDrive, one of these start-ups in Garching. This company is improving the efficiency of electric motors. I was deeply impressed by the vision and spirit of innovation in this sector, in which Germany is already highly regarded for its excellence. Bavarian companies have always been at the forefront of groundbreaking innovations, which in turn have led to important patents.
I have great respect for the combination of tradition and progressiveness that drives innovation and growth. This mindset resonates with me. Because this is exactly what Europe needs now more than ever.
Ladies and gentlemen,
At this very moment, our continent is facing complex existential challenges. Illusions of the past must give way to today’s reality. And that reality is that the next few years will be more turbulent than the last few years. It’s going to be a bumpy ride, so buckle up. All signs point to a geopolitical winter ahead.
First, with Russia’s brutal invasion of Ukraine, war has returned to European soil. At the same time, China’s increasingly assertive geopolitical stance is causing growing concern. The consequences are felt not only in Asia but also here in Europe. We see this increasing assertiveness in cyberspace, in economic policies, and in military modernization.
Second, climate change is hitting us with full force and has far-reaching consequences—for our planet, our economy, and our security. Climate disasters are becoming more frequent and more severe. They are already causing financial damages of 50 to 100 billion euros per year in the EU. And the costs will continue to rise. While our citizens want us to do more to combat climate change, they are also asking how this will affect their daily lives.
Third, Artificial Intelligence holds great promise but also presents significant challenges. For many people in Europe, AI could bring uncertainty and lead to profound changes in the way they work. Fourth, Europe’s economic growth is weak, productivity is low, and high levels of debt are undermining our ability to foster growth and innovation.
Ladies and gentlemen,
This is a snapshot of the complex geopolitical landscape in which we find ourselves. I have painted a picture that may seem intimidating—perhaps even bleak.
But there is a way forward. No matter how complex the challenges are, there are solutions. Solutions that require a strong foundation, clear principles, confidence, and bold action.
First, Europe must significantly increase its defense spending
We must also improve the way our armies cooperate within NATO—this includes specialization in specific tasks and better compatibility of military systems. To counter hybrid threats on our own soil, we must become more assertive.
This requires vigilance. Whether it concerns our undersea cables, cyber threats, or intellectual property theft, we must respond decisively.
Only by working together and pushing back when attacked can we make it too costly for state and non-state actors to test us. Only in this way can we deter aggression and ensure our security. In this spirit, the EU will maintain its unwavering support for Ukraine in Putin’s war of aggression.
Not only because it is the right thing to do. But also because it is the best and most cost-effective investment in our own security. History has shown that appeasement only leads to further aggression. That is why we must never fall into the appeasement trap.
Any negotiations must include Ukraine. It is crucial that Ukraine itself decides on the terms of negotiation. We must never be tempted to make proactive concessions. And certainly not to a dictator known for his lies and aggression. Instead, our goal must be to strengthen Ukraine’s position.
Let me remind you of this timeless principle:
Whoever is strong on the battlefield, with credible allies tirelessly supporting their war efforts, will have the upper hand at the negotiating table.
Beyond Ukraine, we must keep European interests clearly in focus and work more proactively with allies and partners. When dealing with China, we must insist on fair and honest competition and restore balance. Equal rules for both sides—it’s as simple as that.
With the United States, we will continue to pursue a solid transatlantic agenda. And we will always protect European interests. With all other nations, especially emerging powers, we will work more closely together and build strong, equal partnerships.
Second, climate change is a reality that will accompany us permanently
Nevertheless, we must ensure that our decarbonization strategy is both a climate strategy and a strategy for economic growth.
Our vision must be multidimensional. This means aligning climate policy with a just transition for the people of Europe and with competitiveness for our businesses, while also doing everything possible to help our international partners step up their climate efforts. Investing in grid infrastructure, batteries, and domestic renewable energy offers multiple benefits. It is good for the planet, saves money for our citizens, and strengthens our independence.
Third, by fully embracing decarbonization, we can also address Europe’s challenges in productivity, innovation, and competitiveness.
If designed correctly, decarbonization offers enormous opportunities to drive reindustrialization across the continent. For this to succeed, we must engage businesses and demonstrate why this transformation benefits everyone. This is precisely the goal of the Clean Industrial Deal, which we are currently working on and aim to finalize by the end of February. We plan to significantly boost efforts in innovation, technology, and energy storage to create the ideal conditions for the rapid expansion of renewable energy.
Our approach focuses on two key sectors:
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Energy-intensive industries such as steel, aluminum, and cement.
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Clean Tech, where innovative companies often face growth obstacles.
To support these businesses, we must ensure that competition in Europe functions properly and fairly. That means no longer tolerating unfair competition—such as heavily state-subsidized products flooding our market. And we must make it far, far easier to do business in Europe because complexity and bureaucracy are major obstacles to innovation and progress.
Ladies and gentlemen,
The coming years will undoubtedly bring challenges. It will take collective and sustained efforts from Germany, Europe, and all of us. Many of these challenges will persist for years.
But I remain optimistic.
If we embrace the Bavarian mindset—staying true to our principles while remaining open to new opportunities—then I firmly believe that anything is possible.
Thank you for your attention.
Source – EU Commission (e-translated and edited by Insight EU)