Live. EU-Kommissionspräsidentin Ursula von der Leyen hält Rede zur Lage der Union

Europe needs to be ready to make 'clear fiscal choices' for its citizens, European Commission President Ursula von der Leyen said during her State of the Union speech on Wednesday.

"Our economy has withstood the impact of the Middle East wars better than expected. And unemployment is at near-record lows. But the pressures from higher energy prices and borrowing costs are biting for people and for business," the president said.

"Clear fiscal choices will have to be made to ensure fiscal sustainability, while protecting investment. So, kickstarting Europe's economy is our number one priority," von der Leyen added.

Von der Leyen just trumpeted the fact that in the face of an increasingly hostile security situation, Europe is stepping up to the plate, and has increased its defence spending by 80% over half a decade.

"This is a Europe that stands up for each other," she said, adding that Ukraine is also supported in this fight.

"Or when when we stood up for Greenland when threatened," she said.

"Or when drones, hybrid attacks or disinformation target our democracies."

Ursula von der Leyen begins her speech with the iconic opening line of Charles Dickens's A Tale of Two Cities: "It was the best of times, it was the worst of times."

"It is also a fair description of the world we live in today. The speed of change is incredible. The challenges exceptional," she said. "So if I look at Europe today, my take is this. The state of our Union is the strongest it has ever been. The state of our Union can also feel as precarious as it has ever been."

"These two statements may seem incompatible," she goes on. "But they are both true. And they reflect these exceptional times. This complex age of great possibilities and great perils, which all countries are seeking to navigate."

Canadian Prime Minister Mark Carney has received a standing ovation inside the European Parliament after being introduced by Roberta Metsola as the guest of honour.

"They haven't even heard your speech yet," Metsola jokes.

Carney will address the Parliament tomorrow morning.

Ursula von der Leyen, Roberta Metsola and Mark Carney, the guest of honour, have entered the plenary chamber together.

They are received with applause.

The EU does not have other options but using the upcoming EU budget to finance its priorities, member of the European Parliament Sergey Lagodinsky from the Greens told Euronews at its flagship program Europe Today on Wednesday.

"I think we will not have any other option but looking at a new MFF," the MEP said referring to the Multiannual Financial Framework for the period 2028-2034.

The European Union is negotiating its budget and is expected to find a deal by the end of the year. Net payers countries are pushing for substantial cuts and prioritisation of security and defence.

We can see MEPs slowly making their way into the plenary chamber in Strasbourg.

The session will begin with European Parliament President Roberta Metsola.

Former European Council President Charles Michel has told Euronews that Commission President Ursula von der Leyen followed the United States blindly, describing her approach as naive.

Donald Trump had earlier threatened the European Union with additional tariffs, before the two sides struck a trade deal. Michel, who served as President of the European Council from 2019 to 2024, spoke to Euronews in Brussels ahead of von der Leyen's address.

"She started her mandate by blindly following the United States, with a lot of consequences. There was a kind of naivety," Michel said, adding that many leaders had called for greater sovereignty at the time.

"A lot of time was lost," he said.

German MEP Bernd Lange has told Euronews that the European Commission should use its "weapons" if a trade agreement with Beijing is not reached by the October deadline.

The German social democrat, who leads trade negotiations on behalf of the European Parliament, told Euronews' morning show Europe Today that he remains hopeful of a deal.

"My estimate is 51% in favour of getting a result. But it's not a given — let's see. So we have to be clear: if there is no agreement, then we use our weapons," Lange said.

Roberta Metsola, the European Parliament president, briefly spoke to the press before the start of the State of the Union speech, which she called a "big day" for the European Union.

Lawmakers will "ask questions and demand answers" from von der Leyen, she said, with a focus on four priorities: competitiveness, security, climate action and social protection. There are still "too many gaps" between member states and between urban and rural areas, she noted.

Metsola said she was "especially proud" to welcome Canadian Prime Minister Mark Carney to the Parliament. "From this house, we're projecting Europe as a geopolitical actor," she said. "We want to embed and deepen our relations with friends across the world."

Austrian MEP Lukas Mandl has called for deregulation and increased investment ahead of European Commission President Ursula von der Leyen's State of the Union address.

Speaking to Euronews' Maria Tadeo on Europe Today, the centre-right politician, a member of the European People's Party, said that simplifying rules to encourage investment was not sufficient.

"Simplification is not enough, gratification is not enough. The economy needs deregulation," Mandl said, adding that von der Leyen must address issues such as the economy, demographic change and integration.

On von der Leyen's leadership, Mandl said: "We have her in these troubled times, and in troubled times it's extremely important to rally around the leader, and also to support the leader."

Before the speech begins, let's take a moment to review the promises von der Leyen made last year and the results she delivered (or not).

Our team put her work to the test.

State of the Union: Did von der Leyen make good on her promises?

Did Ursula von der Leyen deliver on all the promises she made in last year's State of the Union speech? Euronews puts her work to the test. #EuropeNews

Good morning and welcome to the Euronews live blog!

Here's a rundown of what to expect:

• Shortly after 9 am, Ursula von der Leyen will deliver her State of the Union speech in Strasbourg.
• Following her speech, the leaders of each political group will take the floor in order of representation.
• After that, von der Leyen will reply to the group leaders.
• Thomas Byrne, Ireland's minister for European affairs, will take the floor on behalf of the EU Council's rotating presidency.
• Then, other lawmakers from different parties will intervene.
• Von der Leyen will deliver a final reply.
• Group leaders will reply in reverse order of representation.

The session is expected to finish at around 12.30 pm.