In a world marked by uncertainty, the EU kept its focus on what really counts: building on our strengths, standing up for our values, and supporting our citizens everyday.

This year, the EU worked to turn Europe into a continent where people and businesses thrive.

With our new competitiveness compass, we set out a clear roadmap to boost our economy over the next five years. We also took steps to make business easier in Europe, eliminating administrative burdens for farmers, shop owners and small companies. We proposed 10 packages of simplification measures, which when implemented will reduce administrative burden by €11.9 billion.

We also presented a Quality Skills Roadmap, as well as new proposals on education and skills. Europe already has talent – we want to help Europeans gain new skills going forward.

The EU put a spotlight on what matters most to Europeans, from energy prices to housing.

People across Europe want to find an affordable place to live, work and raise their families. We need all hands-on deck to reduce the high cost of living, and coordinate efforts at national, local and European level. This is why we presented the first-ever Affordable Housing Plan. It will support Member States’ efforts to boost the supply of housing and overcome barriers that are holding back construction.

Electricity and gas bills also remain on the minds of Europeans. It is for this reason that we put forward a new Action Plan for Affordable Energy this year. Our aim is to bring down the cost of energy for both businesses and people – and more initiatives will come in 2026.

As Russia’s war against Ukraine continues, Europeans agree that we must assume more responsibility for our own defence.

Earlier this year, we proposed a Readiness 2030 plan to help boost national defence spending and strengthen our military capability. We created SAFE (Security Action for Europe), a new financial instrument with €150 billion in loans for joint defence procurement. From next Spring, 19 EU countries will receive loans to boost their defence capabilities.

This year, our backing of Ukraine remained firm. We continued to provide political, financial and military support, mobilising close to €34 billion.

In 2025, the EU stepped up its humanitarian response around the world, providing life-saving support to millions affected by conflict and disaster. We increased humanitarian assistance in Gaza, delivering food, healthcare, water, shelter, and protection through trusted partners on the ground. We also gave support for other emergencies, including hunger and displacement in Yemen, Sudan and Chad.

Our Global Gateway initiative continued to reinforce economies across the world. To help bring renewable energy to households across the continent, the EU led the year-long Scaling Up Renewables in Africa campaign and contributed more than €15.1 billion.

In 2025, the EU worked to make trade fairer, stronger and more predictable for everyone. We concluded trade negotiations with Mexico, Indonesia and Mercosur, opening new opportunities for European businesses. In July, the EU reached an agreement with the US. Progress was also made with India, Malaysia and the United Arab Emirates, bringing us closer to agreements that support jobs and growth.

To harness AI’s enormous potential to benefit people and our economy, we launched major initiatives to make Europe a global hub for AI innovation. We committed up to €200 billion in investment and outlined plans for 19 new AI factories to support startups, industry and researchers.

Europe offers great careers, scientific excellence, a high quality of life and academic freedom. We serve as one of the world’s most attractive destinations for researchers and innovators.

Backed with €500 million in funding, we launched the Choose Europe initiative to attract world-class researchers to the EU.

It works: in less than 12 months, EU research programmes have attracted more international applicants than ever before.

The EU stepped up efforts to reach our climate goals, including by agreeing on a new target to cut greenhouse-gas emissions by 90% by 2040.

This year, almost half of Europe's power came from renewables. And thanks to our new Clean Industrial Deal, we have a clear plan to boost clean energy sources in the future.

In looking ahead, we also took steps to better prepare Europe for the future. That is why the EU launched its first-ever preparedness strategy this year, aimed at ensuring everyone is ready for the unexpected.

The EU acted this year to protect our democracy. Through our new European Democracy Shield, we will work to strengthen our democratic institutions, ensure that elections are free and fair, and media in Europe is independent.

And thanks to our new transparency rules, people can easily recognise political advertisements and know who is paying for them.

In 2025, the EU stepped up its work to make Europe a fairer and more inclusive place for everyone.

A major milestone was the launch of a new strategy on LGBTIQ+ equality, aimed at ensuring that everyone can feel safe and free to be themselves. Our new strategy will help us to tackle discrimination and hate-based offences, support LGBTIQ+ communities and organisations, and ensure equal rights across borders.

The EU also presented a new roadmap for women’s rights, our new plan to advance gender equality across all parts of society. Through this we will address the challenges many women still face today – from unequal pay and barriers at work to safety, health, and representation in public life.

In 2025, young people had a stronger voice in shaping Europe’s future. The new Youth Advisory Board brought together young Europeans to share their thoughts about social media and online safety with the European Commission President.

The EU also expanded the Youth Policy Dialogues to give more young people the chance to speak with EU leaders about the issues that matter most to them, including housing, climate, skills and health.

We awarded 40,000 DiscoverEU travel passes. These passes allow young people to take the trip of a lifetime and connect with people from all over the continent.

This year, Europe has switched gears to meet people’s expectations and respond to a changing geopolitical climate.

We will continue to work on our strengths, while standing up for our values. As we celebrate 40-years since Portugal and Spain joined the EU, the benefits of being together in a strong Union where we have each other’s backs have never been clearer.

Bulgaria’s joining of the Eurozone on 1 January 2026 is a proud moment for the country. It is good for all of Europe. A larger, more connected euro area strengthens our Union.

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