Von der Leyen Proposes Canada Partnership, China Rebalance in State of the Union

European Commission President Ursula von der Leyen used her annual state of the union address on Wednesday to set out a broad agenda spanning trade, climate, technology and security, telling the European Parliament in Strasbourg that the bloc faces "an openly hostile world".

Opening her 73-minute speech with the famous line from Charles Dickens' A Tale of Two Cities, she said the phrase "it was the best of times, it was the worst of times" captured the present moment.

Canada as associate member

Von der Leyen said the EU was opening the door to Canada becoming the first "associate member" of the 27-nation bloc — a status not currently defined in EU treaties. She said the two partners stood together in defence of Ukraine and shared a belief in democracy and in the idea that power does not belong to "the strongest, the richest or the loudest".

She proposed lifting the relationship to the highest possible level, with cooperation on economic security, intelligent manufacturing, technology, defence industries, the Arctic, energy, critical minerals, batteries, quantum and cyber security.

Trade deficit with China

Turning to China, von der Leyen described the EU's goods trade deficit of €1 billion per day as "unsustainable" and said a tipping point had been reached. Dialogue with Beijing must produce results, she said, adding that a solution was in both sides' interest.

"Let me be clear: we will use all the tools at our disposal to rebalance our relationship. Words are good. But deeds are better," she told lawmakers. She also announced plans for a European Corporation on critical raw materials to help secure and stockpile supplies.

Climate and disaster cover

Responding to a summer of heatwaves and wildfires, von der Leyen said the EU would launch a "climate insurance alliance" to expand cover for extreme weather events. She noted that only around 25% of catastrophe losses in Europe are covered by private insurance, leaving national budgets as the insurer of last resort.

The Commission will also present a European Heatwave Plan with early warning systems and health preparedness, alongside a water initiative addressing leakage and risk management. For wildfires, she proposed a future European firefighting fleet.

AI and social media

Von der Leyen backed calls from leading US artificial intelligence labs for a slowdown in the development of the technology, warning that increasingly capable frontier models could enable hacking "on a level we never thought possible" and could soon reach adversaries. She said the EU should step up work on guardrails with like-minded partners such as Britain and Canada.

On social media, she said the Commission would propose on Thursday a ban on access for children under 13, along with "mini accounts" supervised by parents that carry limited features and time restrictions until a child turns 15.

Ukraine and security

Von der Leyen pledged the EU's "strongest-ever support" to Ukraine over the coming winter, which she forecast would be the toughest of the war triggered by Russia's invasion. The bloc would provide humanitarian aid, reinforce power and heating supplies and strengthen Ukraine's air defences.

She also proposed a European Security Council bringing together the EU and partners such as Britain, Canada and Norway, and an "emergency security protocol" allowing member states to trigger discussions on crisis responses.

Migration

On migration, the Commission will propose a new European Emergency Response Framework to react to sudden, massive inflows. Von der Leyen said the measure was needed to protect borders, particularly when mass movements are engineered and weaponised. It would be triggered only under strictly defined criteria and offer time-limited flexibility to affected countries.