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Good morning, President Metsola di Roberta, President Costa de António.

Honourable Members Indeed, we had a long and dense European Council.

Let me touch on two of the main topics, starting with European competitiveness.

First of all, of course, we have to do our homework in competitiveness, that is completing our single market.

Indeed, we have proposed EU Inc to make it easier for businesses not only to start, but also to grow in the European Union.

We have made a proposal for a new public procurement act to make procurement procedures simpler and faster.

We've put forward 12 omnibus packages, 3 have reached the finish line. As well as other simplification measures.

If all these measures are agreed together,

they could save over €22 billion every year of administrative burden.

We are building simplicity by design into every new Commission proposal.

But this ambition must also be matched in every Member State, and that was the discussion,

and this is why we are proposing a pact against gold plating.

It has to be very simple a rule that is agreed at European level cannot become more complex and fragmented when transposed or implemented nationally.

Finally, I think we should work much more radically in reducing reporting obligation,

and of course we have to use artificial intelligence for that.

This is why we will introduce a principle we call only once.

That is report data only once, and then, with the help of artificial intelligence,

the administration will and must ensure efficient use.

Of course, the debate also centered on Europe's high energy costs.

Not only are we too dependent on foreign fossil fuels, on gas setting the price,

but we are also squandering opportunities by not having a true European Energy Union.

From grids to interconnectors to aggregated market power and purchasing.

This is why the Commission will develop a plan for a true European Energy Union,

because we have to make much better use of the potential that we do have.

Finally, speaking of energy on our sanctions on Russia.

We have placed energy sanctions on Russia due to its war of aggression against Ukraine, and because of the actual debate. I want to be crystal clear.

These sanctions will stay until Russia stops the war.

Moreover, we should keep our lessons in mind.

It was Russia that cut Europe's supply of gas.

Russia is not a trusted supplier of energy, because it would,

this is our experience at any time weaponize energy dependencies to blackmail others.

So that is a lesson that Europe certainly will not forget.

Honourable Members, as I said, competitiveness starts at home, of course,

but it also depends on our companies being able to compete on fair terms globally. Let me take China as an example.

You know the figure in 2025, our trade deficit with China was €1 billion a day. This is not sustainable. Industrial overcapacity. And unfair market practices are distorting competition.

Just keep in mind that Chinese companies receive up to 8 times more subsidies than comparable firms in the OECD countries. And European industries are paying the price. Factories are under pressure.

We see jobs lost in our industrial heartlands.

So last week at the European Council, we agreed a clear approach first,

dialogue where it delivers, second, action where needed,

and third, stronger tools to defend our interests.

Let me start with dialogue, and I also want to commend Commissioner Šefčovič for his success. We have really seen progress in dialogue.

China has agreed to cut tariffs on EU products worth almost €4 billion.

We secured greater predictability on export controls for rare earth and magnets.

We had the removal of certain EU companies from Chinese control lists,

but I think the clearest example was in the automotive sector. So where did we come from?

Chinese hybrid electric vehicle exports to the European Union had gone up from $2.5 billion to $7.5 billion US dollars,

so a threefold increase in just 12 months.

This surge put, of course, a huge pressure on our industry for hybrids.

Here too, the dialogue now delivered, we agreed an annual quota of 350,000 hybrid vehicles from China,

reducing exports by around 45%.

This will be implemented through a safeguard, so we keep control.

Thus, for the first time,

China has agreed to export moderation in a major industrial sector.

That is proof that dialogue can and does deliver. This is an important first step.

We also should also keep in mind that one agreement in one sector cannot fix an overall structural imbalance,

and that leads me to my second point.

Europe must be ready to act when dialogue does not produce results.

If necessary, we must be ready to use our trade defense instruments.

This includes safeguards to respond quickly when import surges threaten our industries.

To this concept, last week, leaders gave a clear positive signal.

We are already working closely with our chemicals and machinery sectors, which are seeing or facing growing concerns.

The third element, we must reduce our economic dependency.

Last year, new trade restrictions affected almost $3 trillion of global trade,

more than 3 times as much as the year before.

We see critical raw materials, for example, restricted.

We see essential technologies used as geopolitical leverage.

Europe must be able to withstand such a kind of pressure. We will act on 3 fronts. First, reducing our vulnerabilities.

In December we will present a package that we call diversify EU.

It will be country agnostic and it will help European companies to diversify their supply chains.

I think the principle for all of us and all the companies in the European Union is very simple there should be no critical dependence on one single supplier. Second, deterrence. Here we will propose a new instrument. So that we can act faster.

And immediately can limit access to the single market when we see our interests threatened.

Because deterrence works when others know we are ready to respond. My 3rd point is very important. It is solidarity.

Economic threats are designed to divide us, we know this.

To target one industry or one member state.

This is why we will propose a solidarity package so that no Member State is left to face pressure alone.

In a world where economic power is increasingly used as a weapon.

Europe must use its economic strength to defend our interests together.

Honourable Members, another central issue in the last week's discussion was migration. Here, too, Europe has made real progress.

After years of hard work, our pact on migration is now fully applicable.

We have mandatory screening and border procedures, that means the same rules,

fair and firm, apply in all Member States.

We have our return regulation so that those who have no right to stay can be returned quickly.

We have deeper partnerships along key migration routes. The results speak for themselves. Let me give you a few figures.

Illegal border crossings are down by 56% over the last two years. Another 34% so far this year alone. Asylum applications are down by 19%.

Our return rate has almost doubled in 5 years and is now over 30%. These are significant achievements.

They show our common European approach does work.

This summer showed again how quickly new threats can emerge at our borders,

so we must build on this progress, and let me focus on 3 priorities.

First, we need, of course, a full implementation of the migration pact.

We have agreed common rules, now they must be applied consistently.

That means responsibility and solidarity must go hand in hand.

Every Member State must take responsibility for the asylum seekers it is responsible for.

Every Member State must be able to count on European solidarity when under pressure.

We must also reduce incentives for illegal migration and safeguard Schengen.

Because freedom of movement is one of Europe's greatest achievements, and we must protect it.

Second, stronger external borders, we will propose to reinforce Frontex so it can support Member States whenever and wherever needed,

including on returns,

and that means giving it the mandate and the capabilities that this new reality demands.

My 3rd point is preparing Europe for new challenges.

This summer we witnessed the tragic scenes in Ceuta.

We have seen how Russia and Belarus have weaponized migration.

State and non state actors are deliberately engineering mass movements of people.

Of course, the goal is clear they want to overwhelm authorities,

they want to spread fears, they want finally to divide us. They will not succeed.

We will not allow anyone to exploit our values, to put pressure on our Union.

This is why we will propose a so called European Emergency Response framework.

The aim is to give Member States the tool to respond quickly to these kinds of extraordinary threats at our external borders and to protect,

of course, our internal security.

We will present this proposal on the European Emergency Response Framework by the end of this year.

Honourable Members, Europe has come a long way on migration. But there is more work ahead.

We will always be a place that protects those fleeing war and persecution.

To do that, citizens need to trust that our system is fair and functioning,

that rules are enforced, that borders are secured.

Above all, it is Europeans who decide who comes to the European Union and under what circumstances,

and not our adversaries.

This is how we uphold our values and this is how we protect the freedom and the security of our citizens.

Thank you very much and long live Europe. President von der Leyen.