European Union president Ursula von der Leyen has said Europe is seeking greater independence at a time when the world is more fractured than ever.

Speaking at the World Economic Forum in Davos von der Leyen said the meeting marked 55 years since the first meeting.

“Of course, the world has transformed completely since 1971. But the original idea of Davos has remained. So I was delighted that you have gone back to your roots with this year’s theme – A Spirit of Dialogue. Because this spirit is all the more important in a world that is more fractured and more fractious than ever.

“1971 was the year of the so-called Nixon shock and the decision to delink the US dollar from gold. In an instant, the foundations of the Bretton Woods System and the entire global economic order – set up after the war – effectively collapsed. But it also had two major effects. It inadvertently created the conditions for what would become a truly global order. And it provided a sharp lesson for Europe on the need to strengthen its economic and political power. It was a warning to reduce our dependencies – in this case on a foreign currency.”

She continued: “The world may be very different today, without any question. But I believe the lesson is very much the same. That geopolitical shocks can – and must – serve as an opportunity for Europe. In my view, the seismic change we are going through today is an opportunity, in fact, a necessity to build a new form of European independence.

“This need is neither new nor a reaction to recent events. It has been a structural imperative for far longer. So when I used this term – European independence – around a year ago, I was surprised at the sceptical reactions. But less than one year on, there is now a real consensus around this. The sheer speed and almost unthinkable scale of the change have driven this – but the underlying imperative is still the same.”

Von der Leyen continued: “This new Europe is already emerging. On Saturday, I was in Asunción, in Paraguay, to sign the EU-Mercosur trade agreement. It was a breakthrough after 25 years of negotiations. And with it, the EU and Latin America have created the largest free trade zone in the world. A market worth over 20% of global GDP. 31 countries with over 700 million consumers.

“Aligned with the Paris Agreement. This agreement sends a powerful message to the world. That we are choosing fair trade over tariffs. Partnership over isolation. Sustainability over exploitation. And that we are serious about de-risking our economies and diversifying our supply chains.

“That will not stop in Latin America. Last year, we reached new agreements with Mexico, Indonesia and Switzerland – our host country. We are working on a new free trade agreement with Australia. We are also advancing with the Philippines, Thailand, Malaysia, the UAE – and more. And right after Davos, I will travel to India.

“There is still work to do. But we are on the cusp of a historic trade agreement. Some call it the mother of all deals. One that would create a market of 2 billion people, accounting for almost a quarter of global GDP. And, crucially, that would provide a first-mover advantage for Europe with one of the world’s fastest growing and most dynamic continents. Europe wants to do business with the growth centres of today and the economic powerhouses of this century. From Latin America to the Indo Pacific and far beyond, Europe will always choose the world. And the world is ready to choose Europe.”

Von der Leyen said now was not the time to slow down.

“Whether on trade or business, capital or energy – Europe needs an urgency mindset,” she explained. “Our starting point is good. We are home to global champions in fields ranging from wind power to next-generation batteries. From aerospace to the industrial machines that are essential to build chips or advanced weapons. Our companies are taking up AI at the same pace as their US peers. Europe is in the race for the key technologies of tomorrow.

“ But as global competition gets ruthless, we must show real ambition – especially in those sectors vital for our independence. Take defence, for example. We have done more on defence in the last year than in decades before. We have started a surge in defence spending – up to €800 billion until 2030. Member States are stepping up their investment at record levels. This has helped to triple the market value of European defence industry companies since January 2022.”

Von der Leyen explained: “This need for ambition is most important when it comes to the security of our continent. In just over a month, we will mark the fourth anniversary of Russia’s war of aggression against Ukraine. Four years on, Russia shows no sign of abating. No sign of remorse. No sign of seeking peace.

“On the contrary. Russia is intensifying its attacks. Killing civilians every day as we speak. Just last week, its bombing of Ukraine’s energy infrastructure left millions facing darkness, cold, and water shortages. This must end. We all want peace for Ukraine.

“We recognise President Trump’s role in pushing the peace process forward, and we will work closely with the United States. We all agree that Ukraine must therefore be in a position of strength to go to the negotiation table.”

She also sounded a warning to the USA over the ongoing political crisis over Greenland.

“I have spoken a lot today about European independence. On partnerships. On prosperity. And security,” von der Leyen continued. “So I would like to conclude with Greenland. An issue which cuts to the heart of all three of these imperatives. When it comes to the security of the Arctic region, Europe is fully committed.”

“We consider the people of the United States not just our allies, but our friends. And plunging us into a dangerous downward spiral would only aid the very adversaries we are both so committed to keeping out of the strategic landscape,” she concluded. “So our response will be unflinching, united and proportional. But beyond this, we have to be strategic about how we approach this issue.

“This is why we are working on a package to support Arctic security. First principle: full solidarity with Greenland and the Kingdom of Denmark. The sovereignty and integrity of their territory is non-negotiable. Second, we are working on a massive European investment surge in Greenland. We will work with Greenland and Denmark hand in hand to see how we can further support the local economy and infrastructure. Third, we will work with the US and all partners on wider Arctic security.”

“When I started preparing for this year’s address, security in the High North was not the main theme. But in many ways, it feeds into the wider point I started with today. That Europe must speed up its push for independence – from security to economy, from defence to democracy. Engaging in dialogue with our friends and partners, also with adversaries if necessary. The point is that the world has changed permanently. And we need to change with it.”