The European Union is one step closer to concluding what has been described as the “mother of all agreements” with India—one of the largest trade deals of its kind in the world.

Speaking on the opening day of the World Economic Forum in Davos, European Commission President Ursula von der Leyen said her ambition is to create a trade bloc encompassing two billion people.

She said the agreement would “account for almost a quarter of global GDP and, most importantly, create a first-mover advantage for Europe.” “Europe will always choose the world, and the world is ready to choose Europe,” she said.

In a strongly worded speech, von der Leyen stressed that “Europe needs a sense of urgency,” noting that this momentum is already beginning to take shape, particularly in the defence sector. She pointed to recent developments in the European defence industry as clear evidence of increased mobilisation.

“We have done more for defence in the last year than in decades before. We have launched a major spending drive, reaching up to €800 billion by 2030,” she said.

Von der Leyen also underlined the need to bring an end to the war in Ukraine, revealing that EU member states will provide a total of €90 billion in support to the country over the next two years. “Four years on, Russia shows no sign of retreat or willingness to pursue peace. On the contrary, it is intensifying its attacks, killing civilians every day,” she said.

Call to accelerate the energy transition

Another key EU priority, von der Leyen said, is the creation of an interconnected and affordable energy market—a true energy union.

“Energy is a choke point for both businesses and households. One only has to look at the large price differences between European electricity hubs,” she said. “Europe needs a single energy plan that connects all the pieces. This is our roadmap to affordable energy.”

She added that the EU is investing heavily in energy security and independence through interconnections and energy networks, with a strong focus on domestic energy sources. “We are promoting nuclear and renewable energy as much as possible to reduce prices and dependencies, and to put an end to volatility, price manipulation and supply shocks,” she said.

At the same time, von der Leyen stressed that the energy transition must be accelerated, arguing that “reliable, resilient and affordable energy of European origin will fuel economic growth, benefit European citizens and ensure our independence.”

She concluded by reiterating that whether in trade, business, capital or energy, Europe must act with greater urgency.