The State of the Union address by European Commission President Ursula von der Leyen

Statement by the Taxpayers Association of Europe (TAE)
following the State of the Union address by European Commission President Ursula von der Leyen, 16 September 2026

We welcome the analysis of the state of Europe and Commission President Ursula von der Leyen’s plans to strengthen Europe, make it less dependent on third countries and ensure greater security, growth and prosperity. However, it will be crucial that these plans are implemented in practice and that the desired effects are achieved.

From the Taxpayers’ Association’s perspective, the following points are now important:

1. Make the announced reduction in red tape measurable now.
   The direction is right, but announcements alone are not enough. When the Commission talks of a reduction in administrative burdens of 17 billion euros, this relief must actually reach businesses, and in particular small and medium-sized enterprises. New European rules must not eat into these savings elsewhere.
2. Competitiveness must take precedence over new burdens.
   Von der Leyen herself says that high energy prices are placing a burden on businesses and citizens, and that Europe cannot remain an industrial powerhouse if energy prices remain high in the long term. From the Taxpayers’ Association’s perspective, this means: no additional tax or regulatory burdens that further hamper investment and growth. We also need national relief measures, growth incentives and a reduction in red tape to strengthen competitiveness.
3. New tasks must not automatically mean new funding.
   The speech announces numerous new initiatives – ranging from energy and raw materials, through AI and climate, to security and defence. From the Taxpayers’ Association’s perspective, the following must therefore apply: priorities must be set and existing programmes reviewed before additional funding is requested.
4. No new EU taxes and levies (own resources) to finance
   an ever-expanding budget.
   It is not without reason that the Taxpayers’ Association criticises the Commission’s proposed Medium-Term Financial Framework (MFF) for 2028–2034, which is set to be increased to around two trillion euros and provides for additional EU own resources. The repayment of COVID-19 debts from Next Generation EU and new policy tasks are not a carte blanche for an ever-expanding EU budget.
5. No new shared debt as a permanent mechanism.
   If Europe wishes to spend more on defence, infrastructure, energy or technology, it must first be clarified what is less important within the existing budget. In the Taxpayers’ Association’s view, the answer must not repeatedly be: more funding and more debt – and thus a greater burden and reduced capacity to act for future generations.
6. Facilitate private investment rather than constantly creating new funding schemes.
   Von der Leyen herself speaks of creating better conditions for investment and growth and strengthening Europe’s capital markets. The taxpayers’ policy approach would therefore be: the state does not have to finance every investment itself. Above all, it must create better framework conditions to encourage private capital to be invested.

Conclusion from the perspective of the Taxpayers Association of Europe (TAE)

• The announced reduction in red tape must translate into genuine relief. When Ursula von der Leyen speaks of a reduction of 17 billion euros in bureaucratic costs, this money must ultimately be saved by businesses. New regulations must not immediately eat into this relief.
• Europe must strengthen its competitiveness rather than placing an ever-greater burden on citizens and businesses. High energy prices, taxes, levies and red tape are a massive problem for business locations – both nationally and at European level. We need better conditions for investment and growth.
• New tasks must not automatically mean new expenditure, new debt and new EU levies (EU own resources). It will be important for the EU to set new priorities. This means reviewing existing expenditure, assessing the efficiency of how funds are used, identifying potential savings and mobilising private capital – rather than reflexively seeking new sources of revenue.

Our appeal is therefore this: Europe does not simply need more money. Europe simply needs to manage the money it has more effectively.

Brussels/Munich, 16 September 2026