Ursula von der Leyen’s State of the Union 2025 address was the most combative of all the annual speeches she has delivered as President of the European Commission.
The main message is that Europe must fight for its place in a world where many major centers of influence treat it with indifference or open hostility.
Ukraine was predictably at the center of the speech. But now it is not only seen as a victim of aggression that needs to be pitied and supported. Ukrainian military power is seen as part of a broader battle for the future of Europe.
In 2025, it is no longer a matter of deep concern, but of practical joint action. The creation of industrial and military infrastructure across Europe to protect its values and beliefs, in which Kyiv is an integral part.
While in 2022 the talk was about housing for refugees and sanctions, in 2025 it is about a drone alliance and high-quality military power. And sanctions are now seen as a proactive mechanism for exerting real pressure on the Kremlin.
Ursula von der Leyen began her speech with these words: “Europe is in a battle. A battle for a united and peaceful continent. For a free and independent Europe. A battle for our values and our democracies. A battle for our freedom and our ability to determine our own destiny. Make no mistake, this is a battle for our future.”
The President of the European Commission recalled that the EU had provided Ukraine with almost €170 billion in military and financial aid, but that this was not enough. “More will be needed. And it is not only European taxpayers who should bear this burden. This is Russia’s war. It is Russia that should pay,” she stressed.
She proposed a new “reparations loan” mechanism. This would be a mechanism for financing Ukraine using frozen Russian assets. “We need to urgently work on a new solution for financing Ukraine’s defense efforts based on frozen Russian assets. Thanks to the funds associated with these Russian assets, we can provide Ukraine with a loan for reparations. The assets themselves will remain untouched,” explained the head of the European Commission.
According to von der Leyen’s plan, Ukraine will receive the funds it needs immediately. Kyiv will only begin to repay this loan when Moscow pays reparations — that is, in essence, Russian funds will “compensate” for Russian payments.
War and the “wall of drones”
Another innovation announced in the speech is the Qualitative Military Edge concept for Ukraine, which provides for systematic support for investments in the capabilities of the Armed Forces of Ukraine.
Drones, which have become a symbol of modern warfare in recent years, are set to become a symbol of this advantage. “Today, Ukraine’s use of drones accounts for more than two-thirds of Russian weapon losses,” the European Commission President emphasized, but reminded that Russia is doing the same — rapidly developing the use of various types of drones. Therefore, Europe is creating a “Drone Alliance” together with Ukraine, which will help scale Ukrainian innovations to the level of industrial production.
“I can also announce that Europe will allocate €6 billion from the ERA loan ahead of schedule and join the ”Drone Alliance” with Ukraine. Ukraine has ingenuity. What it needs now is scale. And together we can provide it: so that Ukraine can maintain its advantage and Europe can strengthen its own,” von der Leyen said.
The development of the military industry is becoming one of the key areas of EU policy. Russia leaves no other choice. “Putin’s military economy will continue to exist even if the war ends… Of course, NATO will always remain important. But only a strong and reliable European defense capability can guarantee our security,” Ursula von der Leyen began the defense section of her report.
In the context of the development of the EU’s defense economy, the President of the European Commission mentioned the Readiness 2030 plan, which aims to mobilize up to €800 billion in defense investments by 2030, as well as its component, the €150 billion SAFE program for joint arms purchases, including joint projects with Ukraine.
“19 member states have already submitted applications. The program is fully booked. This is good news. We are also working on incentives for those who support Ukraine or purchase Ukrainian equipment,” von der Leyen said.
Referring to her recent visits to eastern EU countries, she announced Brussels’ intention to invest in the deployment of enhanced real-time space surveillance for defense purposes, “so that no movement of forces goes unnoticed.
She reminded that the European Commission will present a roadmap at the next European Council meeting on October 23-24. This will enable the launch of new joint projects in the field of defense and the setting of specific goals for 2030.
“2030 is tomorrow. And it is today that Europe must prepare,” the European Commission President concluded. The real threat of Russia’s aggression spreading to the EU has gradually changed the ideology and very essence of the European Union. From a neutral and pacifist state, it is moving quite dynamically towards the formation of a strong defense alliance that is forced to fight — and win.
At the same time, this is a clear signal to all defense companies regarding the need to develop the latest weapons and produce them in large volumes. While the hot phase of the war is going on in Ukraine, our European companies have a unique opportunity to test experimental weapons directly in combat conditions. With mutual bombing of enterprises, this will not be so convenient.
After all, the Great War is still ahead, and the issue of security is becoming more relevant than ever. Gradually, governments will have to cut social spending in their budgets and allocate more funds to the defense sector.
