Honourable Members, our economy has withstood the impact of the Middle East wars better than expected. Unemployment is at near record lows.

The pressures from higher energy prices and borrowing costs are biting for people and businesses.

Clear fiscal choices will have to be made. To ensure fiscal sustainability while protecting investment.

Kick starting Europe's economy is our number one priority.

We have a huge market, world class industry and services, a rich pool of savings,

and one of the world's leading currencies,

and yet we still fragment our capital, networks and purchasing power.

This is why, when we took office, we together put in place a bold plan.

To build an economy where innovation and energy flows across borders. Where companies compete and grow across Europe. Savings finance our future.

This is the logic of the Draghi and Letta report. Together we are delivering.

We have to be faster, all institutions, yes, we know this.

We now have the political agreement on one Europe, One Market roadmap.

Together, by the end of next year, we can,

and we must complete this historic overhaul of the single market.

In today's economy, speed is of the essence.

A permit or a form, a grid connection of financing decisions,

all of this can determine where an investment is made and where jobs are created. We need to move much faster.

This is why we will put forward proposals to further speed up permitting. Where projects are in Europe's strategic interest. We need to massively accelerate.

Where administrative burden is slowing down business and SMEs, we need to slash that too.

You know that our 12 omnibus proposals are reducing the administrative burden by around €17 billion per year.

Honourable Members, simplification cannot be a one way street.

All levels have to have skin in the game.

We have long spoken about the harms of gold plating.

Honourable Members, yes, we are doing our best at the European level to cut red tape.

But now I think it is time for the Member States to step up.

If we are serious about simplification, we also need a pact against gold plating.

Europe cannot remain an industrial powerhouse if its energy prices are structurally too high.

When Russia cut us off the gas, we fought back. Our supplies are now more diversified.

We invested in our homegrown clean energies, and this is renewables and nuclear.

But then came the closure of the Strait of Hormuz.

Again, we bitterly felt the cost of our general dependence on imported fossil fuels. Let me just give you one figure.

Since the start of the conflict in the Strait of Hormuz,

imported fossil fuels cost us an additional €90 billion without a single molecule of energy in addition.

So we need to double down on our affordable and homegrown clean energy, be it renewables or nuclear,

be it biomethane or others, technologically neutral,

but these energies must give us independence and drive down energy prices. For this independence. We need to electrify Europe.

Our goal is to double the share of electricity by 2040.

With this Europe could cut its fossil fuel import bill by €260 billion per year.

But we also need to ensure that the electricity we generate is available.

Last year we installed more than 80 gigawatts of renewable capacity.

But 6 times more capacity is still waiting to be connected. What a waste.

This is why we need the grids package so urgently.

We must invest faster, we must speed up grid connection,

we must develop storage, in short, let's make Europe's future electric. This is a must.

Honourable Members, we can bring down energy prices, invest and innovate more, reform our economies,

but all this is undermined if our companies do not compete on a level playing field.

Our trade deficit with China is now €1 billion a day. It has reached a tipping point.

Some say the second China shock is looming, but it's already here.

It shows in our communities and factories across our Union, it leads to deindustrialization in the industrial heartlands of Europe.

This is unsustainable, and this is why we are engaged in a dialogue with China to rebalance our trade,

but this dialogue must now lead to results.

China's weaker domestic demand means it also needs our European market.

It is in both our interests to work together and find solutions, but let me be very clear.

We will use all tools at our disposal to rebalance our relationships. Words are good, but deeds are better.

There is another point we still have too many dangerous dependencies.

We are more than 80% dependent on China for many critical raw materials, 90% for some rare earths.

We have done a lot, but we are not the only ones trying to diversify,

so we need to urgently procure and build up reserves.

No country can do this on its own. We need to think differently.

This is why we will establish a new European cooperation on critical raw materials.

It will help us obtain and stockpile what we need for electric cars,

for chips and batteries, for clean tech and defense, and so much more.

Not only our industry depends on this, but also our independence and our security.

This brings me to my next point on financing.

To be very clear, first of all, on the MFF,

our budget is about our future, and any modern budget needs new own resources.

I thank you for the support of this Parliament from day one on what that topic is concerned.

We must create the conditions for our companies to attract investment and growth.

This is why our work on the Savings and Investment Union is so critical.

Developing capital markets takes time, and the need of our companies is urgent.

We need a banking system that is built for growth, not just for stability.

This is why we will put forward a new banking package, focusing on simplification and tackling fragmentation.

We know the demand for capital is out there,

but we need a greater capacity and appetite for risk.

Our deep tech startups are on track to attract record venture capital investment in 2026.

This is why I announced the new Scale Up Europe Fund last year.

A year on The first investments have been made. In companies such as II.

ICEYE was set up by two young Europeans,

Rafal from Poland and Pekka from Finland.

They initially met through Erasmus some 15 years ago.

Together they founded a tech startup, they developed their ideas around satellite imagery. They got Horizon funding. They proved their technology.

They grew with private investment, and today they are one of the world's leading space technology companies,

with offices in Finland, Poland, Spain and Greece.

ICEYE's story shows that Europe is the home of innovation and that we can reignite Europe's entrepreneurial spirit.

I'm delighted that the founders are with us today.

Please join me in welcoming Rafal and Pekka.

You are a true European success story. Please rise.