Von der Leyen Pushes European Independence at Davos With Four Key Initiatives

European Commission President Ursula von der Leyen, in her January 2026 special address to the World Economic Forum’s Annual Meeting in Davos, made “European independence” the organising theme of her remarks — a doctrinal shift that has shaped every Commission policy initiative since. “European independence has become a salient and urgent priority amid current geopolitical shocks,” she said. “Reforming the continent means overhauling trade partnerships, regulation, investment, energy and defence.”

The Savings and Investment Union

The most operationally significant element of the Davos speech is the Savings and Investment Union. “We are now building the savings and investment union,” von der Leyen said. “We need a large-scale, deep and liquid capital market that attracts a wide range of investment. And this will allow businesses to find the funding they need, including equity at lower costs, here in Europe.” The proposal aims to allow EU companies to “raise financing seamlessly across Europe, just as easily as in uniform markets, like the United States or China.” Implementation involves market integration on trading, post-trading and asset management — and a more efficient supervisory framework.

The trade pivot: Mercosur and beyond

Von der Leyen used Davos to position the EU-Mercosur agreement as the centrepiece of a broader trade diversification strategy. “On Saturday, I was in Asunción in Paraguay to sign the EU-Americas trade agreement. It was a breakthrough after 25 years of negotiations. With it, the European Union and Latin America have created the largest free trade zone in the world, a market worth over 20% of global GDP; 31 countries, with over 700 million consumers.” The Mercosur deal — which entered provisional application on 1 May 2026 — is one of four major trade agreements alongside Mexico, Indonesia and Switzerland, with Australia in negotiation.

Greenland and the Arctic

The most striking foreign-policy section of the Davos address concerned Greenland. “When it comes to the security of the Arctic region, Europe is fully committed and we share the objectives of the United States in this regard. For instance, our EU member, Finland, one of the newest NATO members, is sending its first icebreakers to the United States. This shows that we have the capability right here in the ice, so to speak.” Crucially, von der Leyen also made the political point: “Arctic security can only be achieved together. And this is why the proposed additional tariffs are a mistake, especially between long-standing allies.”

Ukraine: ‘Europe will always stand’

Von der Leyen reaffirmed the commitment to Ukraine: “This should serve as a starting reminder to Russia and as a message to the world: Europe will always stand with Ukraine until there is a just and lasting peace.” The framing is consistent with the EU’s continued financing of Ukrainian military and reconstruction needs through the European Peace Facility (current commitments: €194.9 billion to date) and the contested €90 billion loan that Hungary has blocked.

The doctrine in action

Each major Commission initiative since Davos has fitted into the ‘European independence’ frame: the Savings and Investment Union legislative package (Q2 2026 deliverable), the EU-Mercosur provisional application (1 May), the defense industrial strategy doubling (€90 billion EPF/EDF 2027-2034), the AI Act Omnibus simplification (7 May), and the Moldova €120 million doubling (7 May). The doctrine’s coherence is now its main political asset — and its main exposure if any individual element stalls.